Power: Big promises but no extra funding

The ambitious announcements for the power sector by the finance minister seem to have low financial backing. Clean energy, part of the government's stated welfare package has got less than expected allocation.

The Centre's flagship Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) - aiming to provide solar-run irrigation pumps to farmers - has received ~1,000 crore or 0.01 per cent of the total estimated outlay. KUSUM was first announced in the 2018-19 Budget, with an outlay of ~1.4 trillion.

This Budget has increased the target to connect two million farmers through offgrid solar pumps, from 1.75 million earlier, and to 1.5 million grid-connected solar irrigation systems from one million earlier.

R K Singh, Union minister for power, new & renewable energy, said KUSUM'S implementation is yet to begin. "Many states, however, floated similar schemes and are providing solar pumps," he said.

Power distribution, the financially weakest link in the system, did not receive a separate scheme or allocation. Government has allocated ~100,000 to the ministry of power under the head of 'Reform Linked Distribution Scheme' details of which are awaited.

Though the finance minister announced 100 per cent smart pre-paid metering in three years, no specific allocation was announced for the same in the Budget. Allocation to electrification schemes DDUGJY and IPDS has been increased to ~4,500 crore and ~5,300 crore for 2020-21, respectively.