‘Energy security is India’s top priority in switching to clean fuel’

First tranche of Sovereign Green Bond expected 16,000 crores. What is the expected allocation for these schemes?

The Finance Ministry has formed a group in which we have Joint Secretary (Distribution) as a representative, and they are finalizing the modalities. I believe that the energy sector is the prime candidate for green finance as about 70-80% of the funding needed for the energy transition will be for the energy sector.

But it is not just the Ministry of Power in Energy – we also have the Ministry of New and Renewable Energy (MNRE) and the Ministry of Petroleum and Natural Gas. The Ministry of Coal also conducts activities that help the environment, such as coal gasification and emissions-reducing activities. Finance Ministry will consider. The demand is huge.

You recently talked about the expansion of the RDSS scheme? What would that expansion include?

Perhaps we will need more outlay, because the modernization and upgradation requirement projected by the states requires a bigger outlay which we are preparing and we will go to the finance ministry. Right now the data is being worked on.

I think the major expenditure will be under RDSS, as most of the DPRs (Detailed Project Reports) have been sanctioned in RDSS. The states have been working, so the work will start in this financial year, but the big financial requirement will be in the next financial year.

Therefore, RDSS funds will be required in the next financial year, along with requirements for all other schemes such as transmission schemes for the Northeast, then support to Bureau of Energy Efficiency, and Central Power Research Institute etc. These are the main ones.

You have said earlier that local bodies should clear their dues. Is there any mechanism that you are looking at to ensure that the dues are cleared?

There are two interventions. First of all, we are saying that all government electricity connections including local bodies should be put on prepaid. Therefore, one can only consider excluding emergency services such as hospitals, drinking water services and street lighting. But all other government connections should be on prepaid. Hence, there will be no question on any outstanding amount. And for these services and past dues, many states have put in place a mechanism for centralized payment of these arrears from the amount earmarked for these local bodies. So, at the state level they deduct those outstanding dues and they pass it on to the discoms. Many states are doing this, so we have advised other states to have a similar mechanism. The prepaid mechanism is part of the RDSS pre-qualification. States are already committed to this.

With the introduction of smart meters, will the prepaid model become mandatory for retail electricity consumers?

Yes absolutely, everyone has to prepaid it. This is within the timeline of the Scheme (RDSS) till FY25. Not only home, but industry, commercial consumer and all. However, we are not doing anything mandatory for the farmers. Don’t be confused about this.

Several discoms were recently banned from exchanges due to delay in payment of dues. What is the situation on that front?

Till now there is only one discom, which is Jharkhand (which is barred). So, people are regulated, they get paid, then they are held back. There is a discipline that will continue. This system has been very effective. All the existing dues have been cleared and the legacy dues are being paid. There are only a few exceptions where regulation comes in, they are paid and the regulation is removed.

What are the main priority areas of the energy transition for your ministry?

Our top priority is energy security. We will make progress on the energy transition with a focus on energy security. The key priority is universal access, clean energy for every Indian and Indian economy.

Therefore, we have designed our Nationally Determined Contribution (NDC) keeping India’s energy needs in mind, and meeting that energy requirement, we will increase the share of non-fossil fuels. I think India has done very well in achieving the NDC, which I think is much more than what is required under the ‘Common but Differentiated Responsibilities’ as per the UNFCCC (United Nations Framework Convention on Climate Change) and the Paris Agreement. Is. We will achieve the goals we have set.

What will be the main thrust areas?

There are two major goals. One, installed capacity to generate electricity from non-fossil fuels will increase to 50% by 2030, up from around 41% currently. This is not a constant thing, it will be 50% of the increased capacity. Therefore, today the non-fossil fuel capacity is about 170 GW. This 170 GW will go at least closer to 400 GW. Second, the emissions intensity of our economy is down by 45% in 2030 relative to the 2005 benchmark.

On Universal Electrification of India, a study was to be conducted by UCLA. Is this happening?

Yes, studies are on for an independent assessment of the unprecedented effort India has made successfully. The study is analyzing how it has been with the rapid mobilization and completion of these tasks. Study has been awarded, and they are studying. It is a study that will reveal about the entire mission that has been accomplished, what the experience has been and how it has been accomplished, as well as the learnings for others.