dna Conversations: A sensible policy framework for energy conservation is urgently needed(Part-1)

DNA: How do you look at the field of energy conservation especially when it comes to hydrocarbons and the environment?

Parasnis: When I look at energy, I think of only two very important things. One is fuel, and the other is coal-based electricity. In the fuel sector, we check trends and do some analysis. I see some very interesting trends in India. While the subsidy [per vehicle] has reduced by more than 15%, the number of vehicles has increased around five-fold. In the city of Chennai it has grown the most. Mumbai ranks fourth.

So while petrol prices keep going up, subsidy is being lowered, the number of vehicles keeps increasing. It shows that people can afford to pay for the fuel and the vehicles. Moreover there are also people who can afford to travel by AC [airconditioned] buses. So if we increase the tariff for public transport, but make is more comfortable, more people could opt for it [thus reducing the demand for cars and hence fuel].

DNA: So more people could opt for mass rapid transport systems if they were made more convenient and comfortable.

Parasnis: Yes. It should be made more comfortable. Like AC buses. Maybe the tariff could be three times more than the normal fare. But there are people who can afford it. So my point is that in India even though we say that it is a developing economy, and poor, the data show that many people can afford better modes of transport [which also save the nation fues costs]. We need better mass rapid transport systems.

DNA: Absolutely.

Radhakrishnan: Look at the larger context of energy. Energy demand in India has been going up and it has to go up because we are growing. We have been growing at a decent rate as compared to other developing or developed countries. So when your GDP is doing well, obviously youll need more energy to sustain that growth. That is one part.

The other part, interestingly, is that the per capita consumption of energy continues to be low as compared to developed countries. So we have a paradoxical situation. But the aspirations of the public to consume more and more to improve the standards of living cannot be ignored. It cannot be denied. Yet, as a country which has a large population and must import huge quantities of energy inputs, the strain on our foreign exchange also cannot be overlooked. It is in this context that energy conservation has to be emphasized.

DNA: True. Consumption of fuel has direct link to standard of living.

Radhakrishnan: And this will require other sets of policy measures to be brought in.

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dna Conversations: A sensible policy framework for energy conservation is urgently needed(Part-1)