Essay on Using Solar Energy to Substitute Kerosene as a Fuel in India
Rural Solar electrification as a substitute for Kerosene subsidies in India
In a recent article in the Times of India, renowned economist Swaminathan S. Anklesaria Aiyar has posed a million dollar question: “For decades, kerosene has been sold at highly subsidized prices on the grounds that it provides essential rural lighting to villages without electricity. However, if electricity is now available in all villages in some states, and will soon cover the vast majority of the rural population, why should the kerosene subsidy continue, especially when it’s well known that a corrupt, leaky distribution system means that little …show more content…
Traditional solutions to avoid Exploitation of Kerosene subsidies areShort term: Small price increase for PDS kerosene in 2012 and the Expert Group chaired by Kirit Parikh recommended periodic price increases for PDS kerosene (Government of India, 2010). Medium to long term: Develop a roadmap gradually replacing PDS kerosene with direct payments (cash transfers, etc.), to be rolled-out on a state-by- state basis.
Alternative Solutions (Self analysed proposals based on the gathered statistics)
Total Kerosene subsidy by government (Fiscal + under recovery) ~ Rs.20415 Cr. per year. We make a conservative estimate that 50% of the total kerosene subsidy is spent on energy needs other than cooking