Indian energy industry needs USD 150 billion investment
According to a study "India Energy Outlook 2007" released by leading consultancy KPMG, India's power and upstream energy sectors such as coal, oil, gas and nuclear power need funds to the tune of USD 120 to USD 150 billion over the next 5 years. According to it, India's energy consumption is rather low by world standards and the robust growth rate targeted by the country should entail a four fold rise in energy requirement.
The study said that in 2004-05, the total energy consumption for India was estimated at 572 million tonne oil equivalent and the per capita consumption was placed at 531 kilograms oil equivalent. However, with the targeted gross domestic product growth rate of over 8% and an estimated energy elasticity of 0.80, the energy requirement of the country is expected to grow at over 6.4% per annum.
Some of the other highlights of the study are:
- India to exhaust extractable coal reserves in next 45 years
- Only 10.6% of installed electricity capacity in private sector
- India has the world's lowest per capita natural gas consumption
- Theft, pilferage, non collection result in losses of over USD 6 billion annually
- Railways can contribute in major way to energy savings
- 38 new coalfields with reserves of 800 million tonnes need USD 2 billion investment
- Discovery of new gas fields in India point to potential in the area
- Tariff reform in the energy sector and distribution reform in the power sector are two important steps that need to be successfully carried out
- India has one of the largest deposits of thorium. Thus nuclear energy has tremendous potential in the country.
- India is endowed with a potential for 150,000 MW but just 17% of it is harnessed. To achieve the target of 45,000 MW in 10 years private sector participation will be important.
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