8th Five Year Plan (Vol-2)
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Agricultural and Allied Activities || Rural Development and Poverty Alleviation || Irrigation, Command Area Development and Flood Control || Environment and Forests || Industry and Minerals || Village and Small Industries and Food Processing Industries || Labour and Labour Welfare || Energy || Transport || Communication, Information and Broadcasting || Education, Culture and Sports || Health and Family Welfare || Urban Development || Housing, Water Supply and Sanitation || Social Welfare || Welfare and Development of Scheduled Castes and Scheduled Tribes || Special Area Development Programmes || Science and Technology || Plan Implementation and Evaluation



8.65.30 Considering the large additions envisaged in respect of the generation and transmisson capacity of the power system, there is need for upgrading relevant technologies. The Department of Power has already initiated the necessary technical work in this regard. The work on finalisation of parameters of transmission line equipment and materials needs to be expedited. The on-going HVDC transmission works involve imported technical know-how. It is necessary to develop a strong indigenous technological base in this area. The first phase of Lower Sileru-Barsoor HVDC line as part of the National HVDC Project has since been commissioned . It is necessary to bring it to full load commerical operation quickly and expedite the work of the second phase so that the process of indigenisation of this technology may he quickened.

Manpower development

8.65.31 Many of the electricity utilities have surplus manpower. There is also considerable scope for upgradation of the skills of the personnel in this sector. During the Eighth Plan, therefore, it is essential that the manpower needs for implementing and operating the incremental generation and T and D facilities are assessed carefully and the available manpower deployed optimally. There is need to strengthen the available training facilities so that a compre hensive programme of manpower development is taken up in a systematic manner. This is essential in view of the rate at which technological upgradation is taking place in this sector. It is also necessary that the electricity utilities in the Central and the State sectors are provided inputs from disciplines other than engineering such as electricity economics, commercial relations, environmental sciences etc for enabling them to discharge their functions more effectively.

Environmental Management

8.65.32 In recent years, issues relevant to the adverse environmental impact of power projects have assumed considerable importance and have been a subject of public debate. The Eighth Plan will address itself to these issues directly and provide necessary safeguards so that environmental safety and stability may be ensured in implementing power projects in the future. A comprehensive policy is being evolved for the rehabilitation of families displaced by power projects. The Eighth Plan will place considerable emphasis on implementing such a policy. Special importance will he accorded to programmes aimed at catchment area treatment in the case of all major hydroelectric projects so as to contain the process of environmental degradation that has already taken a severe toll in many parts of the country. In the case of thermal power projects, in addition to installing facilities to restrict pollution to reasonable levels^ special steps will he taken to reduce ash pollution" by setting up facilities to convert fly ash into fly

Table 22 Outlays for Power Sector
(Rs. crores)

States UTs Centre Total
Generation 24732.78 354.24 24337.13 49424.15
Transmission and Distribution 16782.41 1061.53 4436.81 22280.75
Rural Electrification 4000.00 - - 4000.00
Renovation and Modernisation 1225.74 13.40 537.30 1776.44
Miscellaneous 220.93 16.71 1870.34 2107.98
Total 46961.86 1445.88 31181.58 79589.32

ash bricks to replace conventional clay based building material. Steps will also be taken to promote other uses of fly ash so as to convert this waste into a useful product, and at the same time, reduce the environmental degradation near the generating units. High priority will also be given to enforcing rigorous safety standards in the case of all nuclear power projects.

Research and Development

8.65.33 The R and D activities currently are confined to applied research in selected areas. R and D support is required for working out progressive and sophisticated technologies which would enhance efficiency in the power sector and reduce costs. R and D work is required for maximising electricity generation, enhancing energy efficiency, oil substitution and maintenance of environment balance.

8.65.34 Presently, research activities are organised by Central Power Research Institute and Central Board of Irrigation and Power in cooperation with academic institutions, manufacturing industries and the utilities. A Scientific Advisory Committee has been constituted by the Department of Power for advising the Government on the various R and D programmes to be undertaken in this sector. The areas of priority for R and D during the Eighth Plan will be as follows:-

(i) Materials and Equipment
(ii) Systems and Controls
(iii) Electronics and Communications

Plan outlay

8.66.1 Keeping in view the priorities for the Eighth Plan as indicated above, the outlays for the power sector for the Eighth Plan are given in Table 22.

The Central sector outlay of Rs.31,181.58 crores includes outlays for the power programme of Neyveli Lignite Corporation and Nuclear Power Corporation. The outlay for rural electrification is included in the States/UTs outlay. The State-wise outlays are shown in Annexure 8.4.

8.66.2 The financial outlays provided now for the Plan programme for the power sector fully cover the requirements of all ongoing schemes which will yield benefits of 24,316 MW capacity (8,969 MW of hydro, 14,247 MW of thermal and 1,100 MW of nuclear) during the Eighth Plan. In addition, these outlays are expected to take care of a major portion of requirements of new generation schemes which are expected to yield additional capacity benefits of 3,412 MW (151 MW of hydro, and 2,261 MW of thermal). In order to achieve the targeted hydel share of 40% in the total installed generation capacity by the end of the Ninth Plan, it is recognised that advance action needs to be initiated during the Eighth Plan itself on a number of new hydel projects with a total capacity of at least 15,000 MW. The additional funds required for these projects will have to be found as and when these projects are ready for implementation. Sueh requirements of resources will have to he met from the internal generation of surplus within the power sector itself through technical improvements and rationalisation of tariff structure.

8.66.3 While the need for a progressive step-up in the share ofhydel capacity in the total generation capacity in the country is well recognised, the consideration of environmental and other related problems associated with large storage reservoirs would require careful examination of choice of options for peaking support. The comparative economics ofhydel plants and open cycle units based on liquid and gaseous hydrocarbons for meeting the peak and the intermediate load demand and the indigenous availability of both natural gas and oil will have to be given due consideration in actual policy formulation or project level decision.


8.67.1 rural electrification (RE) as a plan programme was introduced in the first plan. It was initially envisaged to provide electricity as a social amenity to rural areas and was confined only to a few States. Subsequently. It was extended to cover all the States.

8.67.2  The importance of this programme was especially recognised during the drought in the mid-sixties, when lift irrigation had to be resorted to on a large scale to save subsistence crops. The rural electrification programme gained special importance for providing electricity for operating agricultural pumpsets to utilise available groundwater potential.

8.67.3 This programme was subsequently integrated with the Minimum Needs Programme (MNP). The programme was further strengthened by the formation of Rural Electrification Corporation (REC) in 1969 which now provides over 90 per cent of the funds for rural electrification as concessional loans to the State Electricity Boards.

Review of the Seventh Plan

8.68.1 The total number of villages electrified at the beginning of the Seventh Plan was 3,70.322 which accounted for about 76.9% of the rural population. The number of energised pumps was 57.08 lakhs. A target of electrifying an additional 1,18,101 villages and energising24 lakhs pumps was set for the Seventh Plan. Nearly 100,000 villages and 25 laku pumpsets were electrified during the Seventh Plan. The cumulative number of villages thus electrified cover 81 % of the total number of villages. The total number of pumpsets energised has reached 83.46 lakhs by the end of the Seventh Plan.

8.68.2 Electrification of tribal villages and Harijan bastis continued to receive special attention. Out of 1.11 lakh tribal villages, about 70,000 have been electrified. The number of villages in which street lighting facilities have been extended to Harijan bastis was around 2.5 lakhs. However, so far only about 27% of rural households have been electrified, as electrification of a village as per current definition implies that only one or more households in the villas have this facility.

8.68.3 Apart from pumpset energisation, emphasis was laid on the promotion of industrial loads in villages by extending electricity connections for setting up low tension (L.T) industries.

Assessment of the Rural EIcctrincation Programme

8.69.1 A review of the Rural Electrification Programme during the Seventh Plan and earlier. has brought out the following issues, which have to be addressed to, during the Eighth Plan.

  1. The low tariff charged on the sale of electricity to agriculture sector has not only resulted in heavy financial losses to State Electricity Boards hut also led to the wasteful use of electricity and also of water. There is also no incentive for energy conservation. Annexure-8.5 gives the losses due to rural electrification in the States.
  2. The RE programme resulted in an increas'-in T and D losses in the power system due t< extension of the LT supply network in a sub-optimal manner. The T and D losses on an all India level are of the order of 22-23 per cent. Of this total loss, about half attributable to the rural electrification distribution net work.
  3. The connected load in agricultur' sectors presently  estimated at 30.000 MW. is a substantial load on the existing weak electricity distribution network resulting in low voltage and low power which adversely affects the quality of electricity supplied to the rural consumers.
  4. In spite of large scale energisation of irrigation pumps, the number of diesel based pumps continue to increase. At present, there are over 5.5 million diesel pumps with a demand potential of 4.7 million tonnes of diesel oil annually (Annexure-8.6)
  5. Despite the emphasis on supply of LT power to rural industries, such industries are yet to come up on a large scale. The poor availability of power in rural areas is a major reason for their slow development.
  6. The financing of rural electrification programmes, especially pumpset energisation, is becoming increasingly difficult because of the scarcity of concessional funds available for this purpose from financial institutions including NABARD and commercial banks and the higher interest rate for market borrowings.
  7. Rural electrification needs to be treated as an integral part of rural energy supply, which is an essential component of rural development. There is, therefore, an urgent need for coordination in the supply of different forms of energy to the rural areas, as part of integrated rural energy programmes.

8.69.2 Apart from increasing the availability of electricity in rural areas for promoting rural development, it is essential that electrical energy thus made available is utilised efficiently. While providing the necessary resources and facilities to enlarge the coverage of rural electrification in the Eighth Plan, funds should be earmarked for specific programmes aimed at technological up-gradation, strengthening of the power supply systems, demand management and energy conservation.

Rural ElectriHcation in the Eighth Plan

8.70.1 Taking note of the above assessment and keeping in view the progress of implemen tation of the programme in the Seventh Plan, 1990-91 and 1991-92, the rural electrification programme in the Eighth Plan would consist of the following elements:-

  1. Provision of electricity for lighting as a minimum need not only to reduce the use of kerosene oil hut also to enhance the quality of life in the rural areas.
  2. Improvement in the system of power distribution in the electrified villages to ensure quality and reliability of supply.
  3. Load development activities in electrified villages to promote the use of electricity for productive purposes other than irrigation, so as to provide wider opportunities for the rural communities for gainful employment and to improve their incomes. In this context, rural and agro-based industries will be specifically promoted in coordination with the rural electrification programme. Presently growth of rural industries average around one small industry per village in backward areas and about two per village in advanced areas with power capacity ranging from 5 H.P. to 25 H.P. Each industry employs around 1.45 persons on an average. These norms will be revised upwards, based on the specific condition in each State, for setting targets for rural industries.
  4. Electrification of the villages to the extent feasible, increasing the tempo of energisation of agricultural pumpsets to reduce dependence on diesel pumps and bring about saving in diesel oil and thus of foreign exchange.
  5. Reduction ofT and D losses in power supplied to rural areas through optimisation of supply networks and conservation of energy through rectification of pumpsets.
  6. Development of decentralised generating sources like mini/micro hydel, gas based generation projects etc. in places where these sources are available to feed rwal loads. *
  7. Development of co-operatives, preferably operated by the panchayats and other local bodies for distribution of electricity in the rural areas so that there is an improvement in collection of dues, reduction in thefts of electricity and T and D losses.
  8. A rational tariff structure will be developed for the agriculture sector which would provide guidelines to States and SEBs for subsidies to this sector. A national policy for electricity tariff is being prepared for the Eighth Plan which would specifically provide for a minimum floor rate, for the supply of electricity to the agriculture sector.
  9. Policy guidelines would be developed for flow of concessional funds for rural electrification programme through market borrowings and from financial institutions including NABARD and commercial banks and implemented keeping in view the problems faced on this account in the past few years.

Programme Contents of the Eighth Plan

8.70.2 During the Eighth Plan it is proposed to electrify around 50,000 villages. These include about 10,000 villages in the remote areas, which have to be mostly electrified through non-conventional energy sources. It is also proposed to energise upto 25 lakhs pumpsets during this Plan.

8.70.3 Besides these two on-going programmes, the integrated system improvement programmes for improving the rural electricity distribution network, thereby ensuring quality and reliability of electricity supply in the rural areas and reducing distribution losses will be taken up as a thrust programme in the Eighth Plan.

8.70.4 Utilisation of electricity for productive purposes will be another major thrust for the rural electrification programme in the Eighth Plan. Under this programme, rural electrification will be closely coordinated with the rural industries programme including agro-based industries programme. A new scheme for linking rural electrification with the rural industrialisation programme, which would include electrification of small, village and cottage industry units in selected growth centres in each State would be taken up in the Eighth Plan. Annexure 8.4 gives the Statewise break-up.

8.70.5 An outlay of Rs. 4000 crores has been provided for Rural Electrification under the State Plan outlays for the Power Sector.


8.71.1 The programmes for new and renewable sources of energy (NRSE) are important for various reasons. First, the overall scarcity of fossil fuels in our country has given rise to the urgent need for developing and exploiting alternative energy sources. Second considering the vast distances and the costs of transportation of energy to the rural areas in particular, locally available renewable and decentralised energy sources become especially attractive and need to be increasingly utilized for meeting growing rural needs.

Review of Seventh Plan

8.72.1 The Seventh Plan programmes for NRSE provided for intensive R and D for indigenous technologies, setting up of a large number of demonstration projects, testing of devices under field conditions, and creation of demand through Government support. Governmental measures included appropriate financial incentives and development of institutional infrastructure for large scale education, extension and training programmes on such energy resources.

8.72.2 The major programmes for new and renewable sources of energy which were developed and enlarged during the Seventh Plan and Annual Plans 1990-91 and 1991-92 included the National Project on Biogas Development, National Programme on improved chullhas, solar thermal energy utilisation, solar photovoltaics (SPV), wind energy and conversion ofbiomass into energy, energy plantation and biomass gasifiers. Significant progress was achieved in the generation of electric power from solar photovoltaics for lighting and pumping systems, micro hydel schemes, gasifiers based on wood and agricultural waste and wind generation, including wind farms and "stand alone" wind, turbines. A new financing agency the Indiana Renewable Energy Development Agency'

(IREDA) was set up for providing financial support to indigenous technology development efforts and dissemination of non-conventional energy technologies. Another significant achievement in the Seventh Plan was the setting up of State level energy development agencies in most of the States in the country to provide the focal point for development and promotion of renewable energy technologies and their large scale dissemination in all parts of the respective States. A National Solar Energy Centre has been set up for the absorption of technology, pilot experiments, prototype development and testing in solar thermal in general and photovoltaic energy in particular. A large scale programme for R and D was mounted with the involvement of national, regional and State level institutions on different aspects of renewable energy technologies. Training programmes were organised especially for improved chulla-has and biogas. Renewable energy has now been included in the curriculum in many technical institutions and engineering colleges of the country.

8.72.3 A summary of the achievements of major NRSE programmes so far is given in the table below:

The programme-wise assessment is given below:


8.72.4 The family-size biogas programme has now picked up in several States, including Tamil Nadu, Maharashtra and Andhra Pradesh. New models of biogas plants have been developed like the "Deen Bandhu" and the small size two cubic metre plants. Lack of proper maintenance and servicing facilities for such plants in rural areas continues to be a major problem. About 14 lakhs plants have been set up so far in the country.

8.72.5 Limited progress has been made in the promotion of community/institutional biogas plants. The majority of plants set up in this group are institutional plants. Community biogas plants have not been successful mainly because of lack of people's participation in the collection and utilisation of dung for these plants.

8.72.6 Research and development in biogas programme has been aimed mainly at diversification of feedstock and development of alternative and low cost construction material for biogas plants. The R and D efforts, however, have limited impact in the overall reduction of cost and improvement of efficiency of the biogas plants.

Seventh Plan Annual Plan Annual Plan
S.No. and Programme Unit 1985-90 1990-91 1 991-92
Achievement achievement targets
1. Biogas plants lakhs 8.94 1.47
2. Improved chullahas lakhs 75.77 19.88 19.27
3. Solar water heating system(Indust rial) OOO Sq.M. 131.5 33.21 45.00
4. Solar cookers

'000 Nos

15 40 45
5. Wind farms MW 31.40 6.10 6.00

Improved Chullahs

8.72.7 The National Programme on improved chullhas was started in 1983-84. This programme, also included in the Minimum Needs Programme for domestic cooking energy, was expanded significantly in the Seventh Plan. The programme has been well received by the rural people and has, therefore, been extended to all states and UTs with about 12 million improved chullahas installed so far. As many as 58 models of such chullahas including 40 fixed type and 18 portable type have been developed to cater to the needs of different areas and regions. Voluntary organisations have been actively involved, besides various Government and semi-Government agencies in the promotion of this programme. Follow-up maintenance of improved chullhas has been a problem in some States in view of the large scale expansion of this programme.

Solar Thermal Energy

8.72.8 During the Seventh Plan, the manu-' facturing base for solar thermal devices has been substantially developed, specially for solar cookers and solar heating systems which are now being produced and marketed. However, the demand has predominantly been for heating systems in the urban areas and for cookers in urban and semi urban areas. Measures for quality control were intensified, including the introduction of ISI standards for solar thermal devices. Research and development efforts for solar coating materials and improved designs of solar thermal systems have been stepped up. Solar passive architecture programme was taken up. Preparatory plan work for a solar thermal power plant is under consideration for a selected site in Rajasthan. The National Solar Energy Centre has now become operational in Haryana.

Solar Photovoltaic

8.72.9 The high initial capital cost of SPY cells continues to he a major constraint in the expansion of this programme. Significant progress has been made in the setting up of a pilot plant for the manufacture of amorphous silicon in the Seventh Plan period- Single crystalline SPV cells are already being manufactured in the country by Central Electronics Ltd. and BHEL. Some progress has been achieved in the development of cost-effective systems and modules with the involvement of private sector firms. Solar PV cells are being utilised under the rural electrification programme in remote villages where extension of the central grid is not economically viable.

Wind Energy

8.72.10 A major demonstration programme on wind energy generation was taken up in the Seventh Plan and about 32 MW capacity wind farms have been set up in Gujarat, Tamil Nadu, Orissa and Maharashtra. Wind machines of 55 KW unit size capacity have been developed by BHEL, which are being tested along with imported machines of higher capacity. The BHEL is now ready with 200 KW machines. Besides BHEL, three other private sector companies are taking up the manufacture of wind turbines with foreign colaboration, on the basis of their experience in the pilot plants already established. Necessary groundwork has also been completed for the phased indigenisation of wind energy generating equipment.

8.72.11 The wind programme received a set back in the Seventh Plan because of problems in the operation and maintenance of existing wind pumps. Against a target of 5100 wind pumps, only 2,540 wind pumps were installed during the Plan period. However, steps have been taken through the organisation of an all-India R and D project for improvement of design and performance of wind pumps and commercialisation of more cost effective models.

Assessment of NRSE Programmes

8.72.12 Most of the States have set up State Energy Development Agencies for the promotion and development of NRSE programmes. But, these agencies, except for a select few, have been functioning mostly as intermediaries between manufacturers and users in the marketing of NRSE devices, instead of playing their envisaged role as technology development and technical assistance agencies. Their scientific and technological orientation needs to be strengthened.

8.72.13 Moreover, linkages between R and D, which were carried out in academic and other research institutions and their commercialisation remained tenuous and weak both at the Centre and State levels. Manufacturing units still do not have adequate production capacity for NRSE technologies and adoption of adequate quality control measures by them have been not very satisfactory. However, steps were taken in the latter part of the Seventh Plan to standardise solar thermal equipment to ISI standards.

8.72.14 The contribution of renewable energy in meeting the total energy needs of the country has been marginal during the Seventh Plan period. A beginning has been made in the production of power from decentralised energy sources, particularly wind energy and solar photovoltaics, although their overall contribution in the total power supply is minimal. The wind energy programme is still dependent on imported technology. A large scale operational programme on wind energy cannot be taken up unless indigenous wind turbines are available and, therefore, efforts have to be intensified to develop indigenous capabilities in this area. Despite enormous potential and obvious advantages in remote hilly areas, little progress has beĽn made in the area of mi' .-,) hydel power supply. This source can supply cneap energy to rural areas, even in the plains, by making use of canal droppings in particular.

8.72.15 Concerted efforts have to he made in the Eighth plan to overcome the above mentioned problems in the NRSE programme, par-ticulary in the area of technology development, intensification of R and D and the commercial exploitation and promotion of the viable technologies.

Eighth Plan

8.73.1 In keeping with the above background, the major thrust of the programme for New and Renewable Sources of Energy in the Eighth Plan would be in* the following two areas:-

  1. Operational programmes of hiogas, improved chullahas, low grade solar thermal devices would be enlarged and intensified so as to meet a significant proportion of cooking and heating needs in the country especially in the rural areas.
  2. At least 750 to 1000 MW of power capacity would be installed on the basis of NRSE technologies of wind energy, micro hydel, urban/agricultural wastes, solar photovoltaics and also cogeneration programmes wherever feasible.

8.73.2 In the first set of programmes dealing with cooking and heating energy namely biogas, improved chullahas and solar thermal, the main task would he to promote standardisation, provide technical support, including limited subsidy and developing strong linkages of manufacturers with R and D institutions.

8.73.3 While central financial and technical support would continue in the Eighth plan, it is proposed that as these programmes pick up in the States, they are eventually transferred to the State sector, after ensuring that the institutional set-up at the State and decentralised level has been well developed for the effective promotion, installation, maintenance and up-keep of these NRSE devices.

8.73.4 All out efforts would be made to promote large scale commercialisation of NRSE devices, especially of low grade solar thermal devices including solar water heaters, solar cookers and solar driers. Standardisation and commecialisation would also be promoted for portable wood stoves and small (1 to 2 cubic mts.) fabricated biogas plants especially for use by small farm households with one or two cattle.

8.73.5 For the second set of programmes which deal with power production especially based on wind energy and micro hydels, the thrust would be on developing and commercialising indigenous technologies in the Eighth Plan. The State Governments would be provided support to organise wind generation programmes in areas which have the requisite wind potential, by involving the private sector in these programmes in the decentralised production and wheeling of power and purchase of power at "avoided cost".

8.73.6 A major programme would be initiated for the production of power from micro hydels especially in the hill areas of the North Eastern Region and other Hill States besides feasible locations of canal falls all over the country. In this programme too, the focus would be on the standardisation of turbines and their indigenous commercial production.

8.73.7 Co-generation schemes would be promoted especially in process industries using hiomass and agricultural residues, for example, sugar mills and food processing industries etc.

8.73.8 Solar photovoltaics systems would be utilised in far-flung areas where grid electricity is prohibitively expensive and other options are not available. However, in view of the high cost of existing SPV systems, the programme would be limited to selected applications till a breakthrough is obtained in the amorphous silicon technology. IREDA would he utilised to provide financial support in the development of cost effective technologies and power production projects.

8.74.1 A brief write up on the NRSE programme contents for the Eighth Plan is given below.


8.74.2 Atleast 7.5 lakhs bio-gas plants wilk he set-up under the National Project on Biogas ' Development. R and D efforts would be intensified for the development of low cost designs and improvement in operational efficiency of the plants. R and D programmes for utilising waste of animals other than bo vines and increasing the proportion of vegetable waste of all kinds in the slurry feed will be undertaken. Community size biogas plants which could serve cooking and industrial needs of the rural areas would be actively promoted. Repair and maintenance of biogas plants is a major area of concern, for which voluntary agencies, youth and semiskilled workers will be trained. The use of human excreta in biogas plants has been found to be a viable proposition which would be promoted through civic authorities and local bodies. Village communities, and rural groups would be actively involved to promote use of biogas especially through community facilities such as "su-labha shauchalaya" and other similar initiatives where disposal of night soil and garbage would be combined with biogas generation.

National Programme on Improved Chulla-has

8.74.3 The National Programme on Improved Chullahas would be expanded to cover upto 10% of total rural households in the country during the Eighth Plan. R and D efforts would he intensified to improve efficiency of wood stoves and to diversity the feedstock such as non-woody biomass and crop residues in place of firewood. Local production of portable stoves based on standard designs will be encouraged to promote employment. Repair and maintenance of improved chullhas and wood stoves will be taken up as a major activity which can be more readily organised if production is decentralised. Semi-skilled youth from the rural areas would be especially involved on a large scale in such activities. The use of wood stoves or chullhas as well, so as improved kerosene stoves would be promoted among the urban poor as well as to reduce their dependence on firewood and cowdung. A target of 10 million improved chullahas has been set for the Eighth Plan. This programme will be transferred to the State in a phased manner during the Eighth Plan.

Solar Thermal Programmes

8.74.4 Solar thermal energy programme consists of extension programmes, field demonstration and testing for refrigeration, solar passive building design etc. Low grade solar thermal devices such as domestic/industrial solar water heaters, solar cookers, solar driers, solar timber kilns, solar desalination system would be commercialised on expanded scale during the Eighth Plan. Solar Thermal Power Plant would be taken up under the R and D programme for the development of indigenous technology in this field. Operational programmes for low grade solar thermal systems and solar cookers will be transferred to the States as the infrastructure for the successful implementation of this programme develops in the States.

Solar Photovoltaics

8.74.5 In the area of solar photovoltaics, development of thin film amorphous silicon cell would be the thrust area. However, the extension programme with existing technology based on single and poly crystalline cells would continue to be promoted especially for lighting and pumping needs for irrigation and drinking water in rural applications. The use of solar photovoltaic for electrification of remote villages and power generation system of 10-100 KW capacity would be taken up wherever feasible and necessary. R and D efforts would continue to focus on the development and utilisation of amorphous silicon facility, polycrystalline cells and improvement of system efficiency. A National testing facility would be created for testing and caliberation of solar photovoltaic components and devices.

Wind Energy

8.74.6 Wind power generation programme would he taken up on an operational scale, with a time-hound phased manufacturing programme for the indigenous manufacture of wind turbines. Wind power production will be taken up as a thrust area during Eighth Plan. A target of atleast 100 MW (including private sector contribution) is envisaged by utilising mainly indigenous machines. The operational programme of wind pumps for drinking water and irrigation would be modified and expanded in the Eighth Plan. R and D for deep well and low velocity wind pumps would be intensified.

Micro Hydels

8.74.7 The work of setting up micro hydel projects upto 3 MW capacity was transferred to the Department of Non-Conventional Energy Sources in the last year of the Seventh Plan. The total small hydro potential in the country'is estimated at around 5,000 MW. A canal cluster approach would be adopted for bringing about reduction in cost and time in the implementation of these projects during the Eighth Plan period. The programme would be designed both for the utilisation of electrical energy as well as direct coupling of loads with water turbines wherever applicable. Standardisation of micro hydel units will be taken up and new designs developed and promoted. Emphasis will also be given on repairs and modification of existing micro hydel projects.


8.74.8 The programme would focus on R and D and demonstration on fast growing species for energy plantation, and on the development of agricultural wastes and non-woody based gasifiers for power production. Close coordination and linkages of the biomass research with the National Wasteland Development Board programme in social forestry would be ensured.

Urban Waste

8.74.9 The programme would focus on research and development and commersialisation of incineration and other waste disposal technologies. Energy recovery and sewage system plant for gas production would be taken up in major cities and towns based upon waste recycling concepts in collaboration with State governments and local municipal bodies.

Battery Powered Vehicle

8.74.10 Better design of chopper control, fast battery chargers and development of AC drive system would be undertaken before expanding battery powered vehicles programme on an operational scale. R and D would focus on improving efficiency and reducing cost, for improving techno-economic viability of battery powered vehicles.

Miscellaneous Programmes

8.74.11 These include development of alternate fuels, geo-thermal energy, ocean energy, chemical sources of energy, hydrogen energy and magneto hydro dynamic. These technologies are still in the development stage but have considerable potential in the long term. During the Seventh Plan, a broad based R and D programme in various institutions was organised for these technologies. It is proposed to intensify these R and D efforts in the Eighth Plan with the involvement of the academic institutions, CSIR system and other public and private R and D institutions.

Indian Renewable Energy Development Agency (IREDA)

8.74.12 The IREDA would act as a principal partner in collaboration with other financial institutions in extending financial assistance for NRSE projects. Financial viability of this agency would have to be improved by upward adjustment of interest rates in line with market forces. IREDA would also specially focus on financing development of new technologies for harnessing renewable sources of energy and for supporting projects for improving design, efficiency and cost effectiveness of existing commercially viable NRSE technologies.

8.74.13 An outlay ofRs. 857 crores has been provided in the Central Sector for the Department of Non-Conventional Energy Sources. Programmewise break up is given in the Annex-ure 8.7. In addition, a provision of Rs.305.11 crores for New and Renewable Sources of Energy is made under the State Sector against the Seventh Plan outlay of Rs. 412.35 crores.


National Energy Efficiency Programme

8.75.1 Energy conservation is a major thrusl area in the Eighth Plan in view of all round shortages of commercial energy, continuing problems of oil availability and the present wasteful use of energy in the different sectors of the economy. While a number of energy conservation activities have been taken up in the past few years, the impact of these efforts has been limited mainly because of their sporadic and ad-hoc nature and the present uncoordinated approach. It is therefore proposed to launch a comprehensive National Energy Efficiency Programme (NEEP) in the Eighth Plan, which would coordinate and organise existing and new efforts and activities on energy conservation in the different sectors of the economy for achieving targetted energy savings of about 5000 MW in the electricity sector and 6 million tonnes in the petroleum sector during the Plan period. The design and implementation of the National Energy Efficiency Programme will take into account the experience so far which is given below.

(Rs in Crores)

1988-89 1989-90 1990-91 1991-92
Approved Outlay 10.00 10.0 10.00 10.00
Actual Expenditure 7.65 4.69 6.29 N.A.
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