INDIA: Twelfth Five Year Plan (2012–2017) Economic Sectors Volume II

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2012
Effective End Year: 
2017
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power, Multi-Sector
Energy Types: 
All, Power, Renewable, Other
Issued by: 
Planning Commission (Government of India)
Source: 
NITI Aayog Government of India (EN)
File: 
Twelfth Five Year Plan (2012–2017) Vol. II (EN)
Twelfth Five Year Plan (2012–2017) Vol. II (HI)
Overall Summary: 
The Twelfth Plan relies on an extensive range of government programmes, which cover a wide variety of sectors, to help achieve the inclusive and sustainable growth. These include health, education, drinking water and sanitation, provision of critical infrastructure in rural and urban areas, programmes of livelihood support for the weaker sections and disadvantaged sections of our population. The broad vision of the plan is to achieve a ‘Faster, Sustainable, and More Inclusive Growth’. The Plan document outlines an ambitious agenda for policy change. As for energy this includes policies related to energy pricing, energy efficiency and technology and greater involvement of the private sector in exploration and development of primary energy sources. The Volume 2 is structured as follows: 12. Agriculture; 13. Industry; 14. Energy; 15. Transport; 16. Communication; 17. Rural Development; 18. Urban Development; 19. Other Priority Sectors.
Access
Energy access priorities: 
Achieving universal access to electricity is one of the most important goals [...].
Energy access action plan: 
Achieving universal access to electricity is one of the most important goals [...] Subtransmission, distribution network and renewable sources will need to be expanded suitably in consultation with the State Governments to realise this objective.---For effective universal access, the RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana) programme will be restructured.---Facilitating development of city gas distribution in about 300 identified cities in the country.---Solar powered pumps will be provided for implementation in remote, small habitations and those with irregular power supply, especially in IAP districts, by converging subsidy available under Ministry of New and Renewable Energy.
Energy access targets: 
Achieving universal access to electricity is one of the most important goals and the Government plans to provide electricity to each and every household in the country in the next five years by extending RGGVY programme to every habitation irrespective of the size of the population.
Clean cooking solutions: 
Help communities in creating opportunities for clean and sustainable energy supplies for cooking and lighting for better quality of life in areas of operations from CSR funds.---2. National Bioenergy Corporation of India: National Bio Energy Corporation of India (NBECI) will be set up to implement bioenergy mission including cook stove programme.---National Biomass Cook Stove Programme: The proposed initiative plans to universalise access of improved biomass cook stoves by providing assistance in exploring a range of technology deployments, biomass processing and delivery models leveraging public-private partnerships.---[Targets include:] Renewables for Rural applications (Cooking): Biogas Plants (million)0,7, National Biomass Cook stoves Programme (million) 3.5, Solar Cookers (Box type + Dish type) 3.5, Solar Cooking in schools for mid-day scheme (Schools in lakhs)
Consumer subsidies: 
Help communities in creating opportunities for clean and sustainable energy supplies for cooking and lighting for better quality of life in areas of operations from CSR funds.
Efficiency
EE priorities: 
Chemical: Developing new and more energy efficient and environment-friendly/green technologies and processes.
EE targets: 
The projected energy saving potential in the Twelfth Plan is 13.18 mtoe which consists of a saving of 6.2 mtoe from the seven energy-intensive industries (DCs), 1.75 mtoe from SME sector and 5.23 mtoe from thermal power stations sector.---The total projected saving in the year 2016–17, that is, end of the Twelfth Five Year Plan is of the tune of 11.43 mtoe in which 10.41 mtoe is contributed by thermal energy. The rest, which is equivalent to 11.96 BU of electricity saving is estimated at busbar in 2016–17.
EE action plans: 
The National Investment and Manufacturing Zones (NIMZs) will be developed as integrated industrial townships with state-of-the art infrastructure and land use on the basis of zoning; clean and energy-efficient technology;---Assist development of vehicles propelled by alternate energy sources.---Government to prepare a strategy paper on utilisation of different fuels in the transport sector to meet our national priorities of emission control, energy security as well as fuel efficiency.---Encourage the use of plastic components in housing to reduce energy requirements.---Time of Day (TOD) metering shall be taken up by all the utilities for effective demand side management (DSM).---Load shifting arrangement by regulators and improvement in energy efficiency and its measurement by BEE in the agriculture sector shall contribute towards DSM and ease out the pressure on utilities.---During the Twelfth Plan period the introduction of ‘super-efficient’ lights and fans will be incentivised so as to accelerate their development and adoption to enable lower the rate of growth of electricity demand while enhancing services to households.---Improving efficiency of operations of various oil and gas sector installations. Benchmarks for refineries, pipelines process plants, buildings and any other installations to be developed by all the organisations and to be monitored periodically.
EE financial incentives: 
Special Incentives for Green Technologies in NIMZs [...] • Incentive to obtain green rating for buildings.---Petrochemicals: Fiscal incentive to encourage use of renewable feedstock, adoption of green processes and build energy-efficient housing.
Renewable Energy
RE priorities: 
Cement industru: Reducing Environmental Impact of the Industry • Grant cogeneration of power through waste heat recovery status of renewable energy..---The areas on which attention should be focussed during the Twelfth Plan are: • Grid interactive and off-Grid/Distributed Renewable Power • Renewable Energy for Rural Application • Renewable Energy for Urban, Industrial and Commercial Applications • Research, Design and Development for New and Renewable Energy • Strengthening of Institutional Mechanism for enhanced deployment and creation of public awareness.---Adoption of green policy in Telecom and incentivise use of renewable energy sources.
RE targets: 
The supply from renewables is expected to increase rapidly from 24,503 MW by the end of the Eleventh Plan to 54,503 MW by the end of the Twelfth and 99,617 MW by the end of theThirteenth. [...] It is expected to rise from about 1 per cent in 2011–12 to 1.43 per cent in 2016–17 and just under 2 per cent in 2021–22.---it is planned to add a grid interactive renewable capacity addition of about 30,000 MW comprising of 15,000 MW wind, 10,000 MW solar, 2,100 small hydro, and the balance primarily from bio mass planned.---The share of renewables in electricity generated is expected to rise from around 6 per cent in 2012 to 9 per cent in 2017 and 16 per cent in 2030.---Develop capacity building for 5 MMTOE per year of energy from renewables and unconventional hydrocarbon resources. This is with an aim to become carbon neutral for oil sector companies.---Grid-interactive Renewable Power(MW) 30,000 Grid Interactive Solar 10,000 Grid Connected Wind 15,000 Other Renewable Sources 5,000. 2. Off-grid/Distributed Renewable Power (MWe) 3,400, Cogeneration from bagasse 2,000, Solar Off-Grid Applications 1,000, Waste to Energy 200, Bio Gas Based Decentralised Power 50, Others (Biomass Gasifiers, Micro-hydel) 150. 3. Renewables for Rural applications (Cooking): Biogas Plants (million)0,7, National Biomass Cook stoves Programme (million) 3.5, Solar Cookers (Box type + Dish type) 3.5, Solar Cooking in schools for mid-day scheme (Schools in lakhs) 5.0 4. Renewable Energy for Urban, Industrial and Commercial Applications: Solar Water Heating Systems (million sq.m of collector area) 6; Solar Air Heating System (sq m.); CST based systems for community cooking (sq.m.) 50,000; CST based system for air-conditioning 40,000; (125 systems, 30TR) 37,000 CST based systems for process heat (225 systems, 250 sq.m. area each) 53,750. 5. Solar Cities: New Solar Cities in addition to existing target of 60 cities and pending liabilities.15; Model and Pilot Solar Cities. Green Townships. 25; Tourist/Religious/ Important Places 150. Alternate Fuel Vehicles (in numbers) 2,75,000; Power Generation from Hydrogen Stationery Power Generation (KW) 4,0000.
RE action plans: 
romote development and production of biofuels by the oil sector E&P and marketing companies at commercial level. Appropriate policy and integration issues facilitating bio-fuels development be provided by both the State and the Central Governments.---Existing scheme on solar water heaters will continue with a review of capital subsidy. Additionally green building programme and solar city initiative will be expanded to add new cities.---Major New Initiatives: National Institute of Solar Energy: The existing Solar Energy Centre would be converted into an autonomous institution for undertaking applied research, demonstration and development in solar energy including solar hybrid areas. 2. National Bioenergy Corporation of India: National Bio Energy Corporation of India (NBECI) will be set up to implement bioenergy mission including cook stove programme. 3. Renewable Energy Development Fund: In order to address the financing constraints for the grid connected as well as the off-grid applications of renewables, it is proposed to create a Renewable Energy Development fund. The fund will plug the gap between the sector financing needs and the gap between the sector financing needs and the amount that falls short of the banks’ obligations to their lending to this priority sector. 4. National Bioenergy Mission: [...] In view of the success of such biomass-based off-grid renewable models in rural areas of Bihar, it is proposed to launch the Biomass Mission with an objective to create a policy framework for attracting investment and to facilitate rapid development of commercial biomass energy market based on utilisation of surplus agro-residues and development of energy plantations. 5. Renewable Power Evacuation Infrastructure: Special emphasis will be placed on creating evacuation infrastructure and transmission facilities for renewable power in a time-bound manner to support the large expansion in consumption and production of renewable power.[...] ---Solar powered pumps will be provided for implementation in remote, small habitations and those with irregular power supply, especially in IAP districts, by converging subsidy available under Ministry of New and Renewable Energy.
RE capital subsidy, grant, or rebate: 
Special Incentives for Green Technologies in NIMZs [...] • Under renewable energy appropriate incentives under existing schemes will be available.---Petrochemicals: Fiscal incentive to encourage use of renewable feedstock, adoption of green processes and build energy-efficient housing.---Existing scheme on solar water heaters will continue with a review of capital subsidy.
Environment
Energy environmental priorities: 
The Twelfth Plan continues to focus on enhancing household access to cleaner forms of energy with an aim to promote sustainable development.---The mining sector is strategically very important for India. The key goals that need to be met for this space are:[...] • Ensuring sustainability of the environment.---Undertake all mining undertaken within the parameters of a comprehensive Sustainable Development Framework.
Pollution control action plans: 
Assist development of vehicles propelled by alternate energy sources.---Government to prepare a strategy paper on utilisation of different fuels in the transport sector to meet our national priorities of emission control, energy security as well as fuel efficiency.
Decarbonization strategy: 
Develop capacity building for 5 MMTOE per year of energy from renewables and unconventional hydrocarbon resources. This is with an aim to become carbon neutral for oil sector companies.
Energy-water nexus: 
To meet future water demand of thermal power, technical measures for reducing water consumption, creation of large reservoirs/dams of potential rivers to retain flood water and encouraging coastal power plants will be undertaken.---Mining activity should only be carried out at a safe distance from major drinking water sources to protect the quality and sustainability of the source.---Reforms: Formulate ground water use by laws and enforce effectivelyenergy conservation measures especially in pumping.
Pricing
Fossil fuel subsidies: 
Phasing out subsidies on domestic LPG and PDS kerosene.
Energy taxation: 
Rationalise tax structure in sales of petroleum products considering thermal value for its use in transport, industry, power, households and other sectors. Unified State taxes and removal of tax anomalies for efficient use of petroleum products.
Energy pricing: 
Utilities and regulators shall make an action plan to eliminate the gap between the average cost of supply and average tariff realised through improved tariff implementation and adoption of multi-year tariff framework.---Time of Day (TOD) metering shall be taken up by all the utilities for effective demand side management (DSM).---Reforms in the distribution sector should include: Prepaid metres to those categories of consumers who are chronic defaulters, 100 per cent spot billing, spot collection, semi or fully automatic meter reading and standardisation of metering protocols for extensive use of automated meter readings.---Financial restructuring should be supported by regular revision of tariff through adoption of regulations suggested by Forum of Regulators, including automatic tariff adjustment with change in fuel prices and other reform measures to ensure regular revision of tariff and simultaneous investments in reducing AT&C losses.---Operationalise a road map to move petroleum product prices received by marketing companies to prices aligned with global prices.---Provide ‘Declared Goods Status’ for natural gas/ LNG so that it is available at uniform price in most of the States.---Natural gas prices charged to producers must also be determined by market forces.
Energy Supply and Infrastructure
Infrastructure development priorities: 
Improving the supply and quality of both transport infrastructure and power are essential requirements for attaining the targeted growth rates for manufacturing in the Twelfth Plan and beyond.---The mining sector is strategically very important for India. The key goals that need to be met for this space are:[...]• Enhanced co-production of by-product metals for [...] Energy Critical Metals [...].---First, and most importantly, the domestic production of coal, oil and gas and other energy sources has to be stepped up.---it is planned to add a grid interactive renewable capacity addition of about 30,000 MW comprising of 15,000 MW wind, 10,000 MW solar, 2,100 small hydro, and the balance primarily from bio mass planned.---Three HVDC systems and a number of 765 KV lines and substations shall be implemented during Twelfth Plan.---An electric grid interconnection between India and Bangladesh through a Berhampur (India)–Bheramara (Bangladesh) 400 KV DC, 125 km line along with 1 × 500 MW HVDC back to back asynchronous link at Bheramara is being developed for facilitating exchange of power up to 500 MW between the two countries.---Coal handling arrangements at ports must be expanded to handle the larger quantities of imported coal required for power stations. Increase of draft, creation of roll-on/roll-off berths and mechanisation shall improve the load handling capabilities of ports. All these ports must be given priority in effective road/rail connectivity.---Coal exploration must be stepped up to ensure availability of more coal mining blocks for both private and public sectors.---A policy of regulatory framework is to be put in place for shale oil and shale gas development.---Additional development of new LNG import and regasification capacity both on the East and the West coasts of India.---Gas Pipeline transportation infrastructure both on the East and the West coasts and also in southern and northern parts of the country for supply of gas throughout the country.---Facilitating development of city gas distribution in about 300 identified cities in the country.---Incentivise exploration and production of domestic non-conventional fuels like shale gas, CBM, coal mine methane, underground coal gasification and so on.---Promote development and production of biofuels by the oil sector E&P and marketing companies at commercial level.---Expand exploration and production of domestic oil and gas sources[...].---The Government should put in place a policy for simultaneous exploitation of CBM, coal, coal mine methane, oil and gas in a unified manner wherever such resources are available.---[...] integration of renewable into the grid.
Cross-border energy infrastructure: 
An electric grid interconnection between India and Bangladesh through a Berhampur (India)–Bheramara (Bangladesh) 400 KV DC, 125 km line along with 1 × 500 MW HVDC back to back asynchronous link at Bheramara is being developed for facilitating exchange of power up to 500 MW between the two countries.
Trade
Energy trade priorities: 
Additional development of new LNG import and regasification capacity both on the East and the West coasts of India.---Developing LNG import capacity based on Floating Storage and Regasification units (FSRU) in coastal cities of the country which are not connected to gas pipelines to expedite the city gas supply.---Contracting LNG imports both on long- and short-term basis considering market price affordability.
Investment
Energy sector investment priorities: 
[I]nvestments in energy assets in foreign countries, especially for coal, oil and gas and uranium should be stepped up.
Financial incentives for energy infrastructure: 
Cement industry: Upgradation of Existing Plants and Research in Further Developed Technologies: • Funding from corpus of clean energy fund for cement sector for development of processes for using alternate fuel and municipal and solid waste and energy efficient technologies.---A National Electricity Fund (NEF) had been set up. This will now be operationalised. It will provide interest relief to the distribution utilities to cover loans taken from financial institutions for development of the distribution sector.
Independent power producers: 
Open Access shall be provided to consumers with more than 1 MW load in accordance with the Electricity Act, 2003. This was mandatory with effect from 1 January 1 2009 but it has not been operationalised [...].---The introduction of open access must have top priority. State Governments, SERCs and Discoms need to conform to the Electricity Act, which prohibits tariff regulation for consumers of 1 MW and above. These consumers must be free to purchase electricity through open access in a competitive market.
Investment climate development: 
[A] stable and attractive policy regime has to be provided to ensure substantial private investment including foreign investment in oil and natural gas blocks and new capacities for renewable energy. ---Simultaneous Operations of Coal Bed Methane (CBM) and Oil and Gas: The involvement of private sector in this initiative will be enhanced.
Public Private Partnerships: 
The Twelfth Plan will have to place a major emphasis on expansion of Franchise or PPP or privatisation in different utilities as a strategy to reduce network losses and improve efficiency of service and consumer satisfaction.---[...] in order to bridge the gap between peak demand and peak deficit, and provide for faster retirement of the old energy-inefficient plants, the target for the Twelfth Plan has been fixed at 88,537 MW. [T]he share of the private sector in the additional capacity will be 53%.---The large expansion in production and consumption of electricity has to be supported by a significant expansion and strengthening of the transmission network. [...] Greater reliance will have to be placed on gas insulated substations [...].This is an area where public investment can be supplemented by private investment [...]. A policy framework for public–private partnership (PPP) and a standardised documentation is being prepared for use by the States.---Shale Gas Exploration: The involvement of private sector in this initiative will be enhanced.---National Biomass Cook Stove Programme: The proposed initiative plans to universalise access of improved biomass cook stoves by providing assistance in exploring a range of technology deployments, biomass processing and delivery models leveraging public-private partnerships.
Bidding and Tendering: 
A number of initiatives are being taken to promote faster extraction of coal. The policy on competitive bidding for allocations of captive blocks has been finalised by the Ministry of Coal and is expected be made operational during 2012–13. This should result in allocation of new coal blocks.
Governance
Energy management principles: 
To improve safety, counter theft and improve aesthetics, underground cabling work shall be taken up by the utilities for towns under R-APDRP in selected areas.---Reforms in the distribution sector should include: [...] Separation of rural feeders to control losses and improve power availability. Dedicated feeders may be extended to energy-intensive consumers at their cost.---A coal sector regulator should be set up on a priority basis.
National policy structure: 
Develop a policy framework to exploit shale gas.
Energy institutional structures: 
Reforms in the distribution sector should include: [...] Institution of Chief Electrical Inspectorate to Government of India/State Government (CEIG) to be strengthened and to work out a scheme for delegation of authority of mandatory inspection including self-certification to the CEIG to liberalise it from unnecessary controls.
Public database availability: 
Consider an efficient IT system in GSI, IBM and State Directorates to ensure availability of a comprehensive and up-to-date review of exploration data. • For this purpose, create a National Geophysical Data Repository and a National Drill Core Library. • Implement the National Tenement Registry and integrated it with the cadastral maps being digitised under the National Land Records Computerisation Scheme.
Technology
Clean energy technology priorities: 
Chemical: Developing new and more energy efficient and environment-friendly/green technologies and processes.---Paper industry, key recommendations: Technology improvements for better energy efficiency and reduced environmental impact – Improving energy efficiency of existing and designing of incentives for technology upgradation for paper industry [...] – Development of energy efficient technologies – R&D institutes like CPPRI to be strengthened with appropriate funding support.---The share of nuclear power, another clean source from a carbon emission perspective is expected to rise from 3 per cent in 2012 to 5 per cent in 2017 and to 12 per cent in 2030.---Moving towards a smart grid in a manner relevant to our needs will be a key focus area in the distribution sector in the Twelfth Plan. A number of pilot projects will be taken up.---A key initiative for R&D in the Twelfth Plan may include setting up of a technical cell in CEA, which will focus on best practices, R&D in data collection and specific projects and technical support to States for consultancy and implementation. The research projects will include support to universities.---Phased installation of smart metres, extending SCADA system to 100 more towns, and integration of renewable into the grid.
Clean energy technology deployment: 
Cement industry: Upgradation of Existing Plants and Research in Further Developed Technologies: • Funding from corpus of clean energy fund for cement sector for development of processes for using alternate fuel and municipal and solid waste and energy efficient technologies.---Phased installation of smart metres, extending SCADA system to 100 more towns, and integration of renewable into the grid.
Low-emission and cleaner coal technology: 
Development of CMPDI capacity for delineation of viable coal mine methane (CMM)/abandoned mine methane (AMM) blocks in the existing and potential mining areas having partly de-stressed coal in virgin coal seams.---Recovery and utilisation of coal methane in Jharia and Raniganj coalfields. [...] Demonstration of cost-effective technology for dry beneficiation of coal by all airjig. Demonstration of coal dry beneficiation system using radiometric technique.---ICRIiS and ILRIS are coal and lignite resources [...] and are under progress at different data centres in CMPDI/Singareni and NLC. These projects need to be continued during the Twelfth Plan with enhanced outlays for successful completion, maintenance and regular updating.---A number of initiatives are being taken to promote faster extraction of coal. The policy on competitive bidding for allocations of captive blocks has been finalised by the Ministry of Coal and is expected be made operational during 2012–13. This should result in allocation of new coal blocks.
Advanced fuel extraction technology: 
Assessment of prospect of shale gas in Gondwana basin with special reference to CIL areas.
Natural gas transportation technology: 
Gas Pipeline transportation infrastructure both on the East and the West coasts and also in southern and northern parts of the country for supply of gas throughout the country.
R&D energy efficiency: 
Major R&D programmes may be initiated in selective areas and selective sectors for developing new customised energy-efficient technology through indigenous development of applications of already available energy efficient technologies/concepts.
Technology collaboration with other member States: 
Efforts will be intensified to obtain the latest technology from global centres of excellence while at the same time strengthening our own capability. [...] Some of the key areas for R&D development to strengthen domestic capability are in exploration, geo-data processing and interpretation, drilling technology, reservoir studies, ocean technology, oil and gas production technology, well logging technology, biotechnology and geotectonic, quality improvements of the products, improving energy efficiencies of various processes, and yield maximisation of distillation.