Two years of Piyush Goyal: Eyes over Rs 60,000 crore savings for the Exchequer and Rs 40,000 cr for consumers in Next 3 years

Two years of Piyush Goyal: Eyes over Rs 60,000 crore savings for the Exchequer and Rs 40,000 cr for consumers in Next 3 years

As Prime Minister Narendra Modi led NDA government completes two years in office on May 26, 2016, the report card of its Union Power, coal and RE minister, Piyush Goyal talks about programs and policies that can help save the nation close to Rs 60,000 crore per annum besides benefiting consumers by a massive reduction in annual electricity bills by Rs 40,000 crore under the National LED program.

Let’s take a closer look at what this means.

Goyal’s thrust on increasing domestic coal production by state-owned Coal India Ltd that has resulted in lower coal imports will save the country as much as Rs 40,000 crore of precious foreign exchange outgo during this financial year. India saved over Rs 28,000 crore of foreign exchange outgo during the last fiscal on account of reduced coal imports.

Then the minister has aimed at an annual reduction in electricity bills of domestic consumers by over Rs 40,000 crore in the next three years under the domestic LED program besides saving of over Rs 20,000 crore in the agricultural subsidy outgo by 2019.

Speaking to EnergyInfraPost, Goyal said he would provide energy efficient lighting, covering the entire country by 2019 and distribute 77 crore LED bulbs under the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme will cut consumers bill by over Rs 40,000 crore annually. Click To Tweet

As of now, power ministry’s energy efficiency arm–EESL has distributed over 10 crore LED bulbs under UJALA, a move that has led to significant savings to the country and consumers who are using these bulbs.

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In 2014-15, the total number of LED bulbs that were distributed was mere 30 lakhs. The number of LED bulbs distributed in 2015-16 has crossed 15 crore, where 9 crore LED bulbs were distributed under UJALA and the remaining were contributed by the industry.

For this year, the Government is confident of distributing an additional 20 crore LED bulbs. “Sustained efforts under UJALA, coupled with industry support, will help the government achieve its objective of replacing 77 crore inefficient bulbs by March 2019,” Goyal added.

Then, the Modi government’s scheme for Indian farmers to replace the 20 million age-old agricultural pumps across the country with the new-age SIM enabled energy efficient agricultural pumps, with a 5-Star Rating—will help the country save close to Rs 20,000 crore annually on agricultural subsidies,

A massive roll out of two lakh smart agricultural pumps is planned sometime in June in Andhra Pradesh, the state for which the scheme was first announced by Goyal on April 7th. After rolling out the scheme in Andhra Pradesh, the power ministry will take this scheme to others states including Maharashtra, Rajasthan, Punjab, Haryana, Karnataka, Jharkhand and others.

These Agricultural Pumps will come enabled with smart control panel and a SIM card, giving farmers the flexibility to switch-on and switch-off these pumps from their mobile phones and from the comfort of their homes.

“Our larger focus is on agricultural pumps. India uses some 20 million very old age agricultural pumps which are energy guzzlers…then there are another 10 million agriculture pumps, which are working on diesel or other forms of power…so our effort is to make these old pumps energy efficient and replace diesel will electrified pumps in the next 3-4 years,” Goyal said.

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Subsidies are big drain on the country’s economy and India spends close to Rs 65,000 crores towards agricultural subsidies every year. There are 20 million grid connected energy-guzzling agricultural pumps in India consuming 170 billion units of electricity every year.

India spends close to Rs 65,000 crores towards agricultural subsidies every year. Click To Tweet

Frequent break down of these pumps causes inconvenience to farmers besides these old archaic pumps consume higher electricity, thereby putting a burden on the exchequer for a higher agricultural subsidy dole out.

Through these new-age energy efficient SIM-enabled agricultural pumps, Goyal is looking at a 30% savings in energy by 2019. This will then boil down to an annual savings of Rs 20,000 crore on agricultural subsidies or a saving of 50 billion units of energy every year.

These energy-efficient pumps have a smart panel that has a sim-card and a smart meter that will provide ease of operation to farmers who can switch on or switch off these pumps through the mobile besides helping him monitor consumption on real time basis through the smart meters.

“Under the scheme on distribution of new age agricultural pumps, we aim to distribute one million such energy-efficient pumps in the current financial year..it could even be higher. The launch of these pumps is hapenning from Vijaywada in Andhra Pradesh (where 0.2 million or 2 lakh pumps will be distributed) and will be followed by distribution of these pumps in Maharashtra (where 0.5 million or 5 lakh pumps will be distributed)…we are looking at a total of one million or 10 lakh pumps across the nation in the current financial year and this could even go upto 15-16 lakh or 1.5-1.6 million pumps also,” Managing Director of Energy Efficiency  Services Limited (EESL), Saurabh Kumar told EnergyInfraPost.com

Anupama Airy
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Anupama Airy

Founder and Editor at EnergyInfraPost
Independent Journalist and Energy Expert.​ (Worked with leading mainline financial and national daily for 23 years.​)​ Also, Guest Contributor with busines​sinsider.in
Currently, Writing a Book for Penguin India Titled Greased Pole:How Politics and Lobbying Stifled India’s Energy Dreams. The author can be reached on anupama.airy@gmail.com (9810661825)​
Anupama Airy
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