Crisil: Govt’s mega gas plan needs R65k-crore investments

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New Delhi | Published: December 23, 2016 6:26:17 AM

The Centre’s ambitious plan to more than double the share of natural gas in India’s energy mix from 6.5% in 2015 to 15% over the medium term would necessitate investments of at least R65,000 crore just to augment infrastructure for gas import and for laying pipelines, Crisil Research said in a report on Thursday.

oil_reuters-lThe government’s move is in line with the commitment made at the Paris meeting on climate change (called COP 21), to reduce the carbon intensity of India’s GDP by a third from 0.37 kg (per PPP$ of GDP) in 2005. (Source: Reuters)

The Centre’s ambitious plan to more than double the share of natural gas in India’s energy mix from 6.5% in 2015 to 15% over the medium term would necessitate investments of at least R65,000 crore just to augment infrastructure for gas import and for laying pipelines, Crisil Research said in a report on Thursday.

Policy support and incentives are key to achieving the challenging goal, it said. Energy mix refers to the proportion of various fuels in overall energy consumption.

The government’s move is in line with the commitment made at the Paris meeting on climate change (called COP 21), to reduce the carbon intensity of India’s GDP by a third from 0.37 kg (per PPP$ of GDP) in 2005.

India’s plans for renewable power of 175 GW by 2022 is likely to be the key driver to reduce carbon intensity. Renewable power, a relatively cleaner fuel than coal and other liquid fuels, continues to be a higher cost option, which restricts its usage. Weak pricing power of end-users further limits usage in the power and urea sectors, Crisil said.

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