INDIA: Eleventh Five Year Plan (2007-12) Volume I: Inclusive Growth

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2007
Effective End Year: 
2012
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Power, Multi-Sector, Other
Energy Types: 
Power, Nuclear, Renewable, Bioenergy, Hydropower, Solar, Wind, Other
Issued by: 
Planning Commission Government of India
Source: 
Planning Commission
File: 
Eleventh Five Year Plan 2007-12
Overall Summary: 
The Eleventh Five Year Plan provides a comprehensive strategy for inclusive development. Its ultimate objective is to achieve broad based improvement in the living standards of people making growth both faster and more inclusive. The Plan looks into goals including poverty, education, health, women and children, infrastructure, and environment. In particular it addresses the following topics: Inclusive growth: Vision and Strategy; Macroeconomic Framework: Financing the Plan: Financial Resources: Centre and States; Employment perspective and labour policy; Skill development and training; Social Justice: scheduled castes, scheduled tribes, other backward classes, minorities and other vulnerable groups; Spatial development and regional imbalances; Innovation and Technology; Environment and Climate Change; Governance; Consumer protection and competition policy; Development of infrastructure; External Environment: opportunities, challenges and risks.---Note: BPL Below Poverty Line; RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojana.
Access
Energy access priorities: 
Efforts should be made to ensure that the rural electrification infrastructure thus created does not focus on households alone but is also capable of providing three phase supply which can be used to energize pump sets for agriculture.---There is a need to ensure that the tribal villages are automatically electrified, taking recourse also to nonconventional sources of energy. [...].
Energy access targets: 
Electrification of all villages and extending free household connections to all 2.3 crore BPL households through RGGVY, Nuclear power development.
Clean cooking solutions: 
All households should be provided clean cooking fuel at reasonable prices. For those who cannot afford them, or need to supplement them, fuel-wood plantations within 1 km of habitations should be developed.
Consumer subsidies: 
[R]elative prices of different fuels, their transportation charges, and taxes and subsidies have to be consistent so that they reflect true social costs. Such a pricing system should be established in the Eleventh Plan.---SMART CARDS[...] The smart card would have a memory partitioned into distinct modules representing different entitlement groups for which free services or implicit/explicit subsidies are given. These include [...] energy (kerosene, LPG, electricity) [...].
Efficiency
EE priorities: 
Eleventh Plan will work towards policies for various energy sectors that are consistent with the optimal use of the different sources of energy.---There is large scope for improving energy efficiency in the country and this must be pushed vigorously through a variety of measures. These include energy auditing of large energy consumers, benchmarking with more efficient units, labelling and rating energy consuming equipment, forcing higher efficiency standards in major energy consuming sectors such as automobiles, and promoting energy efficient buildings.
EE targets: 
The Accelerated Power Development and Reform Programme (APDRP), initiated in the Tenth Plan, aimed at reducing aggregate technical and commercial losses from over 40% in 2002–03 to 15% by the end of the Plan. This target proved unachievable and excepting in a couple of States, the Aggregate, Technical and Commercial (ATC) losses were reduced by only 2 to 3 percentage points and are presently estimated at about 40%. The Eleventh Plan must aim to bring about at least a 15 percentage point reduction in these losses during the Plan period. ---To increase energy efficiency by 20% by 2016–17.
EE action plans: 
[T]he APDRP programme (Accelerated Power Development and Reform Programme) must be completely restructured and also expanded in scope.---The government’s effort will be towards creating an enabling environment for encouraging energy and carbon efficiency in public and private sectors and towards internalizing climate change concerns in development planning.
Renewable Energy
RE priorities: 
Appropriate policies will be pursued to encourage renewables by linking subsidies, wherever required, to outcomes rather than to outlays. The Eleventh Plan will follow an integrated energy policy to incentivize appropriate choice of fuels and technologies.---Some of areas which would be pushed strongly are wind power, solar applications, biomass gasification, bio-fuels development and other clean technologies.---We will also initiate action to increase our access to cleaner and renewable energy by fully exploiting existing resources (e.g., hydropower and wind power) developing nuclear power, and also supporting research in newer areas such as biofuels from agro-waste, solar energy, etc.
RE action plans: 
Most of the programmes for renewable energy development would continue to be promoted but with a maxim of providing subsidies or incentives which are linked to outcomes rather than capital expenditure.---The programme for biodiesel and ethanol from feed-stocks that do not compete with food production will be encouraged by a well-designed policy to take care of the interests of all the stakeholders in the value chain.
RE capital subsidy, grant, or rebate: 
Appropriate policies will be pursued to encourage renewables by linking subsidies, wherever required, to outcomes rather than to outlays. ---Most of the programmes for renewable energy development would continue to be promoted but with a maxim of providing subsidies or incentives which are linked to outcomes rather than capital expenditure.
Environment
Pollution level targets, PM10, PM2.5, SOx, NOx: 
To attain WHO standards of air quality in all major cities by 2011–12.
GHG emissions reduction targets: 
To attain WHO standards of air quality in all major cities by 2011–12.
Pollution control action plans: 
Washing of coal to reduce its ash content and save on transport charges will also be encouraged.
Decarbonization strategy: 
The government’s effort will be towards creating an enabling environment for encouraging energy and carbon efficiency in public and private sectors and towards internalizing climate change concerns in development planning.
Carbon markets: 
Development and promotion of low carbon and high energy-efficient technologies with reasonable costs will be a priority. The Clean Development Mechanism (CDM) will be used as an incentive.
Energy-water nexus: 
Efforts should be made to ensure that the rural electrification infrastructure thus created does not focus on households alone but is also capable of providing three phase supply which can be used to energize pump sets for agriculture.
Pricing
Energy pricing: 
[R]elative prices of different fuels, their transportation charges, and taxes and subsidies have to be consistent so that they reflect true social costs. Such a pricing system should be established in the Eleventh Plan.---Sale of at least 20% of coal through e-auction, rail freight rationalization, imports without duty, and pricing of coal based on its gross calorific value will be promoted.---Since the bulk of the oil is imported, crude oil should be priced at import parity price.---Gas pricing: The price itself has to reflect its opportunity cost in its marginal use. [...].
Energy Supply and Infrastructure
Infrastructure development priorities: 
The total investment needed in infrastructure, defined to include electricity (including non-conventional energy),[...] storage and gas distribution will have to increase from an estimated 5.43% of GDP in 2006–07 to 9.34% by the terminal year of the Eleventh Plan.---We will also initiate action to increase our access to cleaner and renewable energy by fully exploiting existing resources (e.g., hydropower and wind power) developing nuclear power, and also supporting research in newer areas such as biofuels from agro-waste, solar energy, etc.
Trade
Import taxes and fee exemptions: 
Sale of at least 20% of coal through e-auction, rail freight rationalization, imports without duty, and pricing of coal based on its gross calorific value will be promoted.
Advance rulings: 
[P]etroleum products should be priced at trade parity price, that is, products which are significantly exported should be priced at Free on Board (FOB) prices and products which are significantly imported, at CIF prices.
Investment
Energy sector investment priorities: 
The total investment needed in infrastructure, defined to include electricity (including non-conventional energy),[...] storage and gas distribution will have to increase from an estimated 5.43% of GDP in 2006–07 to 9.34% by the terminal year of the Eleventh Plan.---Public investment will have to give priority to meeting the infrastructure requirements in those subsectors and areas where private participation is unlikely to be forthcoming. These include irrigation and other general rural infrastructure (mainly rural roads, rural electrification, and water supply and sanitation), and also infrastructure development in the more backward areas and the remote parts of the country.
Investment climate development: 
The Eleventh Plan must continue to encourage national and international oil companies to come and explore for oil and gas in the country.
Public Private Partnerships: 
The Eleventh Plan therefore proposes a strategy for infrastructure development which involves a combined response—an increase in public sector investment in infrastructure as a percentage of GDP, and also an increase in private sector investment through some form of public–private partnership (PPP) or directly, where feasible.
Bidding and Tendering: 
Sale of at least 20% of coal through e-auction [...].
Technology
Clean energy technology priorities: 
New technology to extract more oil from known or depleted reserves will also be encouraged.---Some of areas which would be pushed strongly are wind power, solar applications, biomass gasification, bio-fuels development and other clean technologies.---Development and promotion of low carbon and high energy-efficient technologies with reasonable costs will be a priority. The Clean Development Mechanism (CDM) will be used as an incentive. ---Electrification of all villages and extending free household connections to all 2.3 crore BPL households through RGGVY, Nuclear power development.---Development of new energy systems.---The priority areas for the Eleventh Five Year Plan include [...] bioenergy and bio-fuels, bioremediation, and so on, are other important thrust areas.---We will also initiate action to increase our access to cleaner and renewable energy by fully exploiting existing resources (e.g., hydropower and wind power) developing nuclear power, and also supporting research in newer areas such as biofuels from agro-waste, solar energy, etc.
Clean energy technology deployment: 
Nuclear Research: A demonstration unit of the Compact High Temperature Reactor would be built during the Eleventh Plan, which will serve as a platform for development and demonstration of very high temperature heat removal capabilities and other challenges associated with the operation of high temperature reactors.---[T]he project on energy conversion technologies for study of alternate energy conversion technologies will be strengthened.---The Plan would be operationalized by undertaking projects which would create high value and large impact on socio-economic delivery. A few major projects are: Supra-institutional projects: [...]; development of know-how and technology for environmental friendly conversion and utilization of biomass to fuels, lubricants and additives; competencies in clean coal initiative and energy conservation technologies leading to development of Integrated Gasification Combined Cycle (IGCC) and Under Ground Coal Gasification (UGCG) in India;[...].---Networked projects: [...] programme on climate change; hydrogen energy initiative—overcoming materials challenges for the generation, storage and conversion of hydrogen using fuel cells.
Low-emission and cleaner coal technology: 
[M]issions in the following areas should be mounted: • Clean coal technologies of carbon capture and sequestration. • In-situ coal gasification.---The Plan would be operationalized by undertaking projects which would create high value and large impact on socio-economic delivery. A few major projects are: Supra-institutional projects: [...]; competencies in clean coal initiative and energy conservation technologies leading to development of Integrated Gasification Combined Cycle (IGCC) and Under Ground Coal Gasification (UGCG) in India;[...].
Advanced fuel extraction technology: 
[M]issions in the following areas should be mounted:[...]• Cellulosic extraction of ethanol and butanol from agricultural waste and crop residues • Improvement in the yield of Jatropha and other oilseeds for biodiesel.
R&D renewable energy: 
[M]issions in the following areas should be mounted: • Solar photo-voltaics and solar thermal electricity • Cellulosic extraction of ethanol and butanol from agricultural waste and crop residues • Improvement in the yield of Jatropha and other oilseeds for biodiesel.
R&D energy efficiency: 
[A] rigorous R&D programme will encourage development of new sources, more efficient utilization, and improvement in efficiency applications.
Technology collaboration with other member States: 
Areas of research such as high energy physics, nuclear physics, accelerator physics and technology, are distinctly international in character. Suitable collaborative projects by mobilizing the national strengths in these areas would need to be evolved and funded in coordination with other agencies.---The priority areas for the Eleventh Five Year Plan include [...] bioenergy and bio-fuels, bioremediation, and so on, are other important thrust areas. International cooperation activities matching national needs and the above priorities, will also be accelerated