To ensure power at `3/unit over medium term; e-cars on mass scale in 3 years: Goyal

Says by 2030, no petrol or diesel car should be sold in India

CII ANNUAL SESSION 2017

THE GOVERNMENT is looking to ensure power supply at Rs 3 per unit in the medium term irrespective of the source of generation, said power minister Piyush Goyal. He also assured that there is no proposal to increase tariff for farmers.

Speaking at the CII Annual Session 2017 on Saturday, Goyal also elaborated on the government’s plan to introduce electric vehicles (EV) on a mass scale within 3 years to phase out petrol and diesel cars by 2030 with an objective to reduce fuel import bill and running cost of vehicles. He said that the government will build charging infrastructure and battery swapping programmes.

“We are going to introduce electric vehicles in a very big way. We are going to make electric vehicles self-sufficient like UJALA. The idea is that by 2030, not a single petrol or diesel car should be sold in the country,” said Goyal. He said that the government can initially handhold the electric vehicle industry for 2-3 years to help it stabilise. He said that the Ministry of Heavy Industries and the Niti Aayog are working on a policy for promotion of electric vehicles.

While the industry has suffered from stressed assets in the past, Goyal said that 100 gigawatts (GW) of stranded and stressed assets have been revived through policy reforms and resource mobilisation.

He further added that even as India turned power surplus for the first time last year, power demand increased 6.5 per cent during the year and the Deen Dayal Upadhyaya Gram Jyoti Yojana has already reached 75 per cent target to electrify 18,452 villages.

He said that the two years of coal reforms have led to surplus supply for power plants and the government is now focussing on ensuring better domestic coal quality and reengineering processes so that legacy imported coal-based plants can use indigenous supply.

Stating that India has seen a 370 per cent growth in renewable-based generation capacity in the past three years, he said that well-organised and transparent competitive bidding processes have driven tariffs for solar and wind under Rs 3/unit. He further said that, “Efforts are on enhance grid integration of renewables through improved infrastructure, smart grid management, better demand-response services, and the Green Energy Corridor.”

On UDAY scheme, Goyal pointed out that it is not only about financial re-engineering of discoms but also inculcating financial discipline, by capping lending to inefficient discoms. He said, “UDAY has zero financial implications on the Government with no subsidies or write-offs to discoms.”

On the issue of offshore wind projects, Goyal said these are more like a research and development project and suggested that major public sector undertakings, including NTPC, can initially invest in such projects that will lead to development of this segment in coming years.

The government will build charging infrastructure and battery swapping programmes, according to power minister Piyush Goyal