Energy Recap: 1.08 crore LPG consumers gave up subsidies | Clean energy to generate 5 lakh jobs | India’s nuclear capacity to increase and more

By Team Analysis

In the ninth edition of Energy Recap, an editorial newsletter by TA to track and report on major policy developments in India’s energy sector, we bring you some recent  and major insights from the ongoing Monsoon Session of the Indian Parliament and more for this week (26 July to 1 August).

Consumption of petrol and diesel dropped to 20,068 TMT amid first lockdown

After the countrywide lockdown imposed on 25th March 2020, the consumption of petrol and diesel dropped to 20,068 Thousand Metric Tons (TMT) during April-June 2020, approximately 34% less than the consumption for the same period (30,399 TMT) in 2019. 

As the lockdown was gradually lifted and economic activities resumed, the consumption of petrol and diesel gradually increased, reaching 28,410 TMT during January-March, 2021. Further, the consumption dropped with the restrictions imposed during the Second wave of Covid in April-May 2021, only to pick up again. 

Source: Starred Question No. 84; Lok Sabha

India’s nuclear capacity is expected to reach 22,480 MW by 2031

On 28th July, in a written reply to a question in the ongoing monsoon session of the Lok Sabha, Union Minister (PMO) Jitendra Singh said, “India plans to ramp up its nuclear power generation capacity with the addition of 10 reactors, approvals for which have already been accorded by the central government. India’s nuclear capacity will reach 22,480 MW by 2031 with the addition of these 10 reactors.” 

He further informed that there are presently 22 reactors with a total capacity of 6,780 MW in operation and there are 10 reactors with a capacity of 8,000 MW under construction at various stages. 

It is important to note that the government has given approval and financial sanction for the construction of 10 indigenous 700 MW Pressurized Heavy Water Reactors (PHWRs). 

Upon completion of the projects under construction, India’s nuclear capacity is expected to reach 22,480 MW by 2031.

Source: Unstarred Question No. 1401; Lok Sabha

1.08 crore LPG consumers gave up subsidies under the “GiveItUp” campaign

As on 31st March 2021, a total of 1.08 crore LPG consumers have given up their subsidy under the “GiveItUp” campaign across the country. The total number of LPG customers across the country is 28.95 crore.

The details of the amount of subsidy/under-recovery on supply of domestic LPG from 2015-16 to 2020-21 are given as under:

Source: Unstarred Question No. 1010; Lok Sabha

India can save 1.2 billion dollars a year by closing old coal plants, says a study

A study by Council on Energy, Environment and Water (CEEW) finds that India can potentially save Rs 8,940 crore ($1.2 billion) a year by shutting down some old coal-burning power plants and allowing newer ones to run for longer hours. 

The study emphasizes that closing old plants which consume more coal than newer counterparts to produce a unit of power, can help reduce greenhouse gas emissions, clean up the country’s air and reduce soil and water pollution. 

“Shutting down the old plants will also improve the capacity use of the thermal fleet, currently saddled by under-utilization. By clearing out the stock of inefficient assets, we create fresh breathing room and make a case for more investment in the sector – in renewables, energy storage, system upgrades, among others,” the study said.

Source: Business Standard

Shifting to renewable energy will add 5 lakh jobs in India by 2050

A study titled ‘Climate action results in more jobs’ published in One Earth journal has found that phasing out fossil fuels would actually add 80 lakh energy sector jobs across the world by 2050, of which over 5.4 lakh would be in India.

“If the Paris Agreement target of limiting global warming to well below 2 degrees Celsius is met, the number of jobs in India’s energy sector would increase from 8.6 lakh to 14 lakh by 2050,” said Dr Sandeep Pai, co-author of the paper. 

Dr. Pai explained that low-carbon technologies are more job-intensive which could lead to an increase in the number of jobs, especially during the expansion of renewable energy capacity. “As fossil fuel jobs decrease, the increase in energy demand and massive deployment of renewables leads to an overall rise in jobs”, added Dr. Pai. 


100% FDI in oil PSUs approved for disinvestment 

On 29th July, the Union Government permitted the 100% foreign direct investment (FDI) in oil and gas public sector undertakings (PSUs) approved for disinvestment. 

“Foreign investment up to 100 per cent under the automatic route is allowed in case an ‘in-principle’ approval for strategic disinvestment of a PSU has been granted by the government,” said a press note by Department for Promotion of Industry and Internal Trade (DPIIT).

It is important to note that the Union government is selling its entire 52.98% stake in Bharat Petroleum Corporation Limited (BPCL). The 100% FDI move is expected to facilitate the privatisation of the country’s second-biggest oil refiner.

Source: ET EnergyWorld

The Analysis (TA) is a research and communication group | Analyzing India’s legal, policy and political affairs. Write to us at

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