Public Spending Towards Harnessing Renewable Energy in India
The energy sector unquestionably constitutes one of the major driving forces of Indian economy. Ever since the 12th Five Year Plan has projected the growth rate of 8-9% per annum for the economy for the plan period, meeting the enormous energy deficit for the economy has been seen as a key issue. Tapping renewable energy sources is being mooted as a means for meeting the shortages in energy access for the country. Also, for the policy efforts towards re-orienting the traditional carbon intensive economy to a low carbon pathway, the focus will essentially remain on the development of renewable energy to a large extent. The current budgetary outlays for the sector are extremely limited and account for less than 0.1% of the Union Budget. For the development of renewable energy, there is an urgent need to enhance public expenditure for the sector. The policy brief is an attempt to assess the policy priorities and corresponding public spending for the renewable energy sector.