Wednesday, May 14, 2014: In a bid to help save 36 million litres of kerosene, thereby easing the subsidy on it by about Rs 300,000 million a year, the Government of India is teaming up with IIT Bombay to usher in a cost-effective solar project that is expected to light up the lives of nearly 47 per cent people living in rural areas across the country. The ambitious project will be implemented jointly by the ministries of petroleum and new and renewable energy (MNRE). Financial aid for the same will be provided by state-run oil firms’ corporate social responsibility (CSR) fund.
“Fuel conservation is the focus of India’s energy policy and the oil ministry is committed to reduce consumption of kerosene, which is a major health hazard. We have significantly cut diesel subsidy and through solar scheme we intend to reduce kerosene subsidy, which is more than Rs 290,000 million,” a senior oil ministry official was quoted by the Economic Times as saying. The collaboration comes after IIT Bombay contacted the MNRE to support its ongoing community development programme wherein it’s already distributing solar lamps to students living in non-electrified areas across India. The oil ministry was quick to grab the opportunity and asked oil companies to divert their CSR fund to this initiative.
The project will entail a total cost of Rs 480 million. About Rs 148.1 million of it will be provided by the MNRE, sourced from the National Clean Energy Fund. Of the amount, about Rs 100 million has already been given to IIT Bombay over the past three months. Under the same, nearly 27,000 lamps have already been assembled and distributed in Madhya Pradesh.
Meanwhile, MNRE has suggested that sustainability factor associated with solar lighting solutions has led more and more people to opt for the power of the sun lately. “Demand for solar-based lighting products is going up every year because of its viability and sustainability. Tracking the replacement of kerosene is difficult but widespread acceptance of solar as the primary fuel will help bring energy security where it is needed the most,” Tarun Kapoor, joint secretary, MNRE was quoted as saying.
