India Citizen Guide

7/31/2019 India Citizen Guide

1/44

A CITIZENS GUIDE

TO ENERGY SUBSIDIES

IN INDIA

Produced by The energy and resources InsTITuTe and The InTernaTIonal InsTITuTe

for susTaInable develoPmenTs global subsIdIes InITIaTIve.

www.iisd.org | www.teriin.org


2/44

A CITIZENS GUIDE TO ENERGY SUBSIDIES IN INDIA

2012 T Itti Ititt sti dpt

Pi t Itti Ititt sti dpt.

T Itti Ititt sti dpt (IIsd) tit t ti pt

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tt ti , ptiti, itiz pi-k.

IIsd ii i tt ii ti; it ii i t pi iti, i

iti t i ti. IIsd i it it izti i c 501()(3)

tt i t uit stt. IIsd i pti ppt t gt c,

pi t t ci Itti dpt a (cIda), t Itti

dpt r ct (Idrc), t Pi mit. T Ititt i pjt

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T: +41 22 917-8373 | fx: +41 22 917-8054 | W it: www.ii./i

a citiz gi t e sii I Ii

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Isbn 978-1-894784-49-8


3/44

1

A CITIZENS GUIDE TO ENERGY SUBSIDIES IN INDIA

tabl f C

iuc............................................................................................................................21. A Bf ovv f ia ey sub.........................................................................4

1.1 Wt I e si?............................................................................................................4

1.2 W siiz e? ............................................................................................... ....................6

1.3 e sii i Ii: a pt ...........................................................................................61.3.1 Pt Pt.................................................................................................................................6

1.3.2 etiit.................................................................................................................................................13

2. A ey sub g f ia Cz? ....................................................................16

2.1 Wt I t Ipt e sii t e? ........................................................162.1.1 Ipt gt fi..........................................................................................................16

2.1.2 dii mi .............................................................................................................................18

2.1.3 Ipt Pi st oi cpi...............................................................................................20

2.1.4 Ipt Pit oi cpi........ ........................ ....................... ........................ ........................ ...21

2.2 d P Pp bit? .............................................................................................. ..................212.2.1 lPg...........................................................................................................................................................21

2.2.2 hi sp di ....................... ....................... ........................ ....................... ........................ .............22

2.2.3 K......... ........................ ........................ ....................... ........................ ....................... ..................23

2.2.4 etiit sii ........................ ....................... ........................ ........................ ....................... .........24

2.3 Wt at t eit ht? .................................................................................24

2.4 W W t Wi l e si r?...................................252.5 Wt P t r sii h b a t gt? .......................26

3. wha d w K Abu rfm f ey sub?........................................................30

3.1 Pii t sppt P h ...................................................................................... ......31

3.2 g P t sppt r: l itti xpi...........................333.2.1 citi......................................................................................................................................33

3.2.2 g P-t.................... ....................... ........................ ........................ ....................... ...............34

3.2.3 miti ajtt .................................................................................................................34

3.3 ci........................................................................................................................................35

4. e...........................................................................................................................36

5. rfc.........................................................................................................................37

Acklm...............................................................................................................40


4/44


5/44

A BRIEF OVERVIEW OF

INDIAS ENERGY SUBSIDIES


6/44

4

SECTION ONE | A BRIEF OVERVIEW OF INDIAS ENERGY SUBSIDIES

1. A Bf ovv f ia ey sub

Ii iti iiz wit t jti ptti it

itti pi tiit pii it itiz, pi t p.

hw, ii p t t, wi t ii t

ti tt iii.

T pt t i t t i iiz i Ii. T pii

pt pt ti, tti tw kt t i.

uti 2010, t t t t t pi pt, i, k 1 iqi

pt (lPg)2. I J 2010, t Ii t t t pi pt. hw,

pi i,3 Pds k ti lPg ti t t. e i t

pt, omc pi tit, t ki pp t

t. I tt t ii, tiit ii i Ii i t tt

t, t i t t tt t.

1.1 wha i a ey suby?

a iiti ii xit. o itti iiti pt

t W T oizti (WTo), wi itii i tp i:4

() dit t (.., t, , qit ii), ptti it t

iiiti (.., t);

() gt tt i twi i t t (.., i iti

tx it);

() Pii i t t itt, p ;

() I pi ppt.

ia ha hcally ubz y h h bjcv fpc cum fm aal pc vlaly a

pv y acc f cz, pcally h p.[ ]


7/44

A CITIZENS GUIDE TO ENERGY SUBSIDIES IN INDIA 5


Direct FinancialTransfers Grants to consumers

and/or producers Low interest or

preferential loans Government loan

guarantees

Preferential TaxTreatment Tax credits Tax rebates Exemptions on royalties,

duties or tariffs Reduced tax rates Deferred tax liabilities Accelerated depreciation

Trade Restrictions Tariffs Import quotas Non-tariff trade

barriers

Energy RelatedServices atDiscounted Rates Energy infrastructure Public research and

development

Regulation of theEnergy Sector Demand guarantees Mandated deployment

rates Price controls Environmental

regulations Market-access

restrictions

Source: GSI & IESR (2011)

Fu 1 exampl f ey sub

sii ii p ii ii. P

ii pi t pi t itt i tpt. c

ii, t ipi, ppt t pti , wi pi t wi

pt . Ti i k t ii pti.

a ii i pti, t Itti e a (Iea) wi pt

iiti (Iea, 1999):a t ti tt pii t t tt w t t

pti, i t pi i p w t pi pi .

T it tt ii tk w i fi 1.


8/44

6


1.2 why subz ey?

e ii i t ip ki pi , ii ti

itti pi tiit, ppti -iti iti. at

ii t ptti t t it i t t t i t

, t itiiz i t it q. T

q t i i t i i ti i ti i.

1.3 ey sub ia: A aph

I Ii, ii pi pt pt tiit. T pt ti

t pi tt t kpt tiii w p t kt t5. Wi ii t

tiit pt pt pi i t w pi t i pt,

t t i i t t t i it i wi t

it pt. T wi ti tk k t i i pt

pt tiit.

1.3.1 Plum Puc

T pt pt, Pds k, ti lPg i t

itti kt pi6

, wit t t pii i i lPg k.T i, w, pt t i tw t t pi (ii

kti t) t i pi t t pt pt, t ti i

-i t omc. u-i t t i tw t

t pi t t pi t wi pt pt i t omc t t

ti t ti t i pi t t (fi 2).


9/44



a pt t -i i pt iti it t

t ( t i i), wi t pti i ii

it pt noc.7 T ii pti i pt t t omc.

T 1 w w t qtiti t i t 201011.

CostPrice

DepotPrice

FiscalSubsidy

Under-recovery=

CostPrice

DepotPrice

Under-recovery=

Adapted from the price build-up published by Petroleum Planning and Analysis Cell (PPAC).

Fu 2 Calcula f U-cv

th plum puc, amly Pds k, mc LPg al a l f l ha aal mak pc, h h

vm pv a fcal uby LPg a k.[ ]

dmc LPg a Pds K

dl


10/44

8


tabl 1 Quaum f sub a U-cv (201011)

inr c (mll Us$8)

Fcal suby U-cv

Pds K 931 (204) dmc LPg 21,772 (4,777)

Pds K 19,484 (4,275)

dmc LPg 1,974 (433) Pl 2,227 (489)

dl 34,706 (7,614)

tal 2,904 (637) tal 78,190 (17,154)

gvm

Cah Aac

41,000 (8,995)

Upam

Aac

30,297 (6,647)

B

by oMC

6,893 (1,512)

Source: MoPNG (2011)

c it i pi t t pti pti t tt -i

i omc. T t it i ti i i

t t tt t -i. gi t tt iz t -i,

t t it x t i i pi Pds k ti

lPg. c it i t t i t i t t xpit

t cpti t i pi -i t iti

pt pt (ui bt, 2011-12).


11/44



T it t t omc i pi ex post facto i, i.., t t -i

i. T pt t t qt. T, t omc t t iti i t t t. I t, t pi

t tk iti t i ti itt.

T pii it t omc t 20082009. I t pi tw 20052006

20082009, t t pti pt t omc -i ii i

it pii it.

fi 3 w w t t pti t -i (t

i i it) i 20082011.

2008 2009 2009 2010 2010 2011

120,000

100,000

80,000

60,000

40,000

20,000

0

Government Assistance Upstream Assistance Borne by OMCs

INR

Crore

Source: MoPNG (2011)

Fu 3 Cmpa f U-rcv by gvm a

Upam Cmpa fm 20082011


12/44

10


PDS Kerosene

INR

42.31 / litre

INR 28.50INR 0.82

Burden sharingby upstream

NOCs

Under-recoveryto downstream

OMCs

Price subsidyprovided bygovernment

INR

12.99 / litre

DESIREDPRICE REALIZEDPRICE

Domestic LPG

INR

721.58 / cylinder

INR 325.56INR 22.58

Burden sharingby upstream

NOCs

Under-recoveryto downstream

OMCs

Price subsidyprovided bygovernment

INR

373.43 / cylinder

Diesel

INR46.42 / litre

INR 12.95

Burden sharingby upstreamNOCs

Under-recoveryto downstreamOMCs

INR33.47 / litre

Source: PPAC (January 16, 2012)

n: The data pertains to prices applicable on January 16, 2012. Desired price refers to the sum of refinery gate prices,

transport charges and marketing margins paid by OMCs. Realized price refers to the price charged to dealers (depot price)

by the OMCs. Retail prices in each city are calculated by adding excise duty, wholesalers and retailers commission and value-

added tax on the realized price.

Fu 4 Bak f P U U-cvy dl, Pds K

a dmc LPg

fi 4 w ti kw t - pti i

t ii t t pt t t ti pi ppi i nw di J 16, 2012.


13/44



T tt iz -i pt, i, k lPg i 20102011 w Inr 78,190

(us$17.15 ii)9

(PPac, 2011), wi i iiit 1 .07 p t gdP (rbI, 2011). Itt, tt xpit t t tt t t ti w

1.27 p t 2.98 p t gdP, pti (miit fi, 2011).

fi 5 w w tt -i t i kti pi pii -

i pt, i, k lPg i t t ix (20052011).

2008 092007 082006 072005 06 2009 10 2010 11

120,000

100,000

80,000

60,000

40,000

20,000

0

Diesel Domestic LPG PDS Kerosene

INR

Crore

Petrol

Source: PPAC (2011a)

Fu 5 tal U-cv sv Puc


14/44

12


fi 6 w t t i pti i t t i i

k ti lPg 20062011.

2008 092007 082006 07 2009 10 2010 11

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

2,500

2,000

1,500

1,000

500

0

LPG Consumption Kerosene Subsidy LPG Subsidy

Consumptio

n

(ThousandMetric

Tonnes)

Subsidy

(INRCrore)

Kerosene Consumption

Source: PPAC (2011b) and PPAC (2011c)

Fu 6 Cump a Fcal suby Pa f LPg a K

owi t i t ti k t t t t t tt, t

t t i k . T tt -i ti

, w, p t Inr 19,484 (us$4.27 ii) i 2010-11 (PPac, 2011) t

ii itti pi pt.


15/44



1.3.2 elccy

T t pii tiit ii i px t tt pt pt,

i pii ti t tiit i tt tw ti

i tt. m, tt t t pi ii ti t ( pii

tiit t t it t), t t pit ii t t tt tiiti.

c i tt ii it i ti: ti (iti), it,

i, it iw. e t ti i t ii it -ti

pti . T ti -ti tt t tt. e

witi t -ti, tt it ti t i

.

stt tiit tiiti pt tiit ti t i qi t

t. T tiiti t pp t tt t t pti tt tiit

t ii pp t ti t. T i pp i pi t

t ii. T pp ti t w t t ptiti t

tiiti. Ti kw i wit t i ti i pt jti

it i ti.10

T tt t t p t i t i t t

tiiti pti. Ti t i t si bk i t t t tttiiti. ai t sti 65 t etiit at, 2003, t tt t k t

i pt i t t tt tiiti t wi ii . m t t

t, w, t t t k t pt t. T t i pt t

t tiiti i t si r i t w t t t i k.

ai t pt t Pw fi cpti lt (Pfc, 2010), 89 j tiiti i t

t qi Inr 1,90,948 (us$ 40.27 ii) (xi ii) i

20092010, wi ti tt xpit w i, t Inr 2,52,125 (us$53.17 ii). Ti

ti ipi 75.74 p t t t pi.T tiit ii k t t t w i fi 7.


16/44

14


2008 092007 08 2009 10

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Subsidy Released Shortfall (Booked Released)

INR

Crore

Subsidy Booked

Source: Power Finance Corporation Limited (PFC), (2010)

n: This report covers State Power Utilities and State Power Departments in all the States as well as Union Territories of

Puducherry and Private Distribution Companies created as a result of reform measures (distribution companies in Delhi &

Orissa). It covers 90 utilities for the years 20072008, 93 utilities for 20082009 (including successor utilities of Chhattisgarh

State Electricity Board (CSEB) unbundled with effect from January 1 , 2009) and 89 utilities for the year 20092010. The three

distribution utilities of Assam and the trading company Assam State Electricity Board have been bundled together to form a

single distribution utility for the year 20092010.

Fu 7 elccy sub ia


17/44

ARE ENERGY SUBSIDIES

GOOD FOR INDIAN CITIZENS?


18/44

16

SECTION TWO | ARE ENERGY SUBSIDIES GOOD FOR INDIAN CITIZENS?

2. A ey sub g f ia Cz?

ot Ii 1.2 ii pp, ppxit -t i w t pt i.11 e

iit p iptt i i ii pt ti

t t ppti. si p tpi p ti i

(nsso, 2010), i pi t t t t i. It i

t ipti t t t tk it t t ipt tt pi

ii t itiz. Wit ti i i, t wi ti k t t ipt

ii t w, p i pti, w t

it. fi, ti i ti t t t p i .

2.1 wha h impac f ey sub h ecmy?

2.1.1 impac gvm Fac

sii tip t t t t. T it it t iti i t

ipt t i t t.

T i i t t pt pi i 201011 w Inr 2,904 (us$637 ii). I

iti t t i i, t t t it t t omc i t

i ( bx 1) t t - . I 20102011, ti it tt Inr 41,000 (us$8,995 ii) (mPng, 2011).

sc p huhl ypcally p a la ha f

h cm y , cha ful pcaffc hm much m ha h ch.[ ]


19/44



ol b u by h vm f ia paly

mak up f h u-cv f h oMC.

T tit p t 20 itt t i tw 6 9 p t

w i i t tw 20052006 20082009. at

t, t t ti t t t qit t pi wi t t t it t t t ti iqiit .

at t t --t it, t itt t i t pi

t t pt t i t. ft, t

pt, t t wi xpit. hw, i t t p 2010

2011, it w tt i w w pti i

pi ii. It ii , t t w pi ppt i t

it t i pi.

Bx 1 ol B

I it ti qt iw t mi mt dpt, t r bk

Ii (rbI) tt (rbI, 2012):

T ct xt it t pii pt ii

iit iti pii (r. 300 ii) i t ppt t

pt i n 2011. It i tit tt t i xpit pt i

i p t i iit 0.8 pt pit gdP 2011-2012.


20/44

18


Wi ii -i i t pt t t

i i pi, it kpt i i tt pt pt i

tx t t tt t. I 20102011, t tt titi t t t t

t tt xq w Inr 2,25,494 (us$49,472 ii) (PPac, 2011). T tt

titi pi t t, xi t, t, ii, pt tx, tx ii, pit pt t (ii i tx) pi t t t t,

tx, ti, ii, ti ti (ii tiit t), t tx t

pi t t tt t.

Bx 2 th Plum sc Cbu gvm tauy

T tiit ii tt i t tt t pt iiit p

ti t. I iti t ti, t t tw t t t

i t tt w-tiit tiiti. o t pi 20062010, ii t

16 p t t tt tiit ititi pi , t ti

t ii, t t t ititi pi t t Inr 82,000

(us$18,269 ii) (Pi cii, 2011).12

2.1.2 dv a Mu

sii ii pti i t t. f xp, k i

it t tt xpi tpt . si k tt t pp

i t iiz t, t 40 p t t ti Pds pp i it tw

-Pds - (ncaer, 2005). I t pt w ii itt i ipi t qit i wi t t t i tt wit

k. Ti t tit t k, t ipt t qit it i, i

ii i, tipip ii , xi, it xi

ptit tt. It t t tti itt t i i ipi

qit i tw pi iit t .


21/44



I lPg, t t ii lPg i t , t

tti p tw t pi ti i lPg t - ii i . ft, iiz lPg i i it

ti . Ti t xt t pt i t i z

t it (rIs, 2010).

T pii tiit t wt pti i t it t. e

i i w tiit i t pi t t , ti t t t t wi

t xi iiti pp pti t wt t.

I t k k kti ii ti lPg i, t t t

t liqi Pt g (rti spp dititi) o, 2000, wi piit

ti ii lPg t t mkti diipi gii, 2001,

wi pi p ti it . ri i tit lPgititip t wit t titi t ct t, omc p

i it itit. stt t pw t tk ti it k

kti/ii ti lPg. btw api spt 2010, 1,939 i w t

i tit, i wi 11,557 ti lPg i w iz (rj s,

2010). hw, t i ip itit t ti qt tt

it (P, 2008).

Wi t pii p i pti t ii i t t t, t -t

pii pi t t t -xi t t it p.ft, t t iti t itit t k k pt i

ti wi t t t ii.

Bx 3 eff Ma by h gvm

Chck dv f LPg


22/44

20


2.1.3 impac Publc sc ol Cmpa

si t -i t t pt wt pi, t

ipt t pt t w. upt i pi, oi nt g

cpti (ongc) liit oi Ii liit (oIl), i t wt ii t

it t13, t wt pi pti t - .

I 20102011, t pt wt pi w Inr 30,297

(us$6.65 ii) Inr 6,893 (us$1.51 ii), pti.

Ti t t t w pitiit i pi t i t

pt t iti i ipi xpi ti xpti pti

pti. a t pt pi, ongc t t t tt iw oIl g atit Ii liit (gaIl) (fi 8).

2008 20092007 2008 2009 2010 2010 2011

40,000

30,000

20,000

10,000

0

ONGC OIL GAIL

INR

Crore

Source: OIL (2011)

Fu 8 Cu ol U-cvy Bu sha by Upam ol Cmpa

T i it i pi t pi t pi, pit pi

t kt t pt t ptiti kt pi. hw, i kt pi k

it ptiti pit pi t ti t pt; t, wi pit ptiipti

i ii i t ii pt pt, t i iit pit ptiipti i kti

t (pt, i, lPg k).


23/44



2.1.4 impac Pva ol Cmpa

I 2002, t kti tptti (pt i) w p t pit t

p w t noc, i w i t pit pi ri, e

s t kt t . hw, t pi t pi pi

i t ti t pt wit t pi t omc wi kt t t iiz/

t-t t.14 cqt, pt pp w pit

p t itti i.

2.2 d P Ppl Bf?

T ti ii i i pt t xtt t wi iiz t it iii, pii t p. T wi ti i w p itiz

it ii lPg, Pds k, i tiit.

2.2.1 LPg

I 20072008 8 t 9 p t t ppti lPg pi

ki, p t 62 p t i . (nsso, 2010).15 at lPg i iiz t

t t qit t p, lPg i i w-

(gI, 2010).

Coal2%

Firewood and Dung Cake21%

LPG62%

Kerosene8% Others

7%

UrbanCoal1%

Firewood and Dung Cake85%

LPG9%

Kerosene1%

Others4% Rural

Source: NSSO (2010)

n: Others includes households which use no cooking arrangements, gobar gas, charcoal and electricity.

Fu 9 dbu f Huhl by Pmay suc f ey

f Ck rual a Uba ia (20072008)


24/44

22


ai t i t T e r Ititt (TerI), 76 p t t lPg

i t 40 p t t lPg i i j t wtit6.75 p t t ppti (cw t ., 2005). I t, t i lPg, i

, i iiit i.

2.2.2 Hh sp dl

Wi xpiit i i i pi t hi sp di (hsd), t i pi t pt

t t pt pp pt t omc t t t t -

i J 16, 2012, t t Inr 12.95/it.

at 60 p t t i i Ii w i t tpt t (fi 10) wi

54 p t w i t tpt t (gI, 2010).

Transport59%

Plantation20%

Power Generation7%

Industry5%

Misc Services9%

Source: MoSPI (2011)

Fu 10 U f Hh sp dl ia (20092010)

Witi t tpt t, t pti iiz i pit i

i tti; t tt i t xt t pi i tw pt

i.

Pi i t pii t kp k t i iti ipt

i it tptti t pi ti iti. at ti i

t wi i pi t t p, t xt tiip tw i

pi iti i t t qtii i.


25/44



2.2.3 K

Pds k ii t i it iiit t t p. I ti i

pii iti pp 1.3 p t it ki (nsso,

2010). hw, i , 8 p t t k ki. I 2007

2008, 39 p t 5.1 p t k t pi

iti. hw, k i iiit xpi iti w

p wit tiit i i pti. c- led t pw

t pi tti t k- wik t.

Kerosene5%

Electricity94%

Others1%

UrbanKerosene39%

Electricity60%

Others1%

Rural

Source: NSSO (2010)

n: Others includes households which use no lighting arrangements, other oils, gas and candles.

Fu 11 dbu f Huhl by Pmay suc f ey fLh rual a Uba ia (20072008)


26/44

24


2.2.4 elccy sub

etiit i pi t i tt. hw, i iiit

ti t, qtii t it pw ii t i

pit ii. I t ti (iti) t t, tiit i

pi t ii t wi i t it ti 16 . Ti

tpi i t tt tiit. I t tiit

ii iti i 15 tt i Ii, Ki t (2005) tt

t t ii i,17 t i t

i ititi. I t w, t ititi tiit ii i qit t

i ititi i t tt.

2.3 wha Abu h evm a Halh?

siizi pti i itt i .

T i q i i pti t ii,

i pti pti. b t t Itti e a

(Iea), pi t pti ii i tw 2011 2020 w t

ixi (co2) ii 5.8 p t, p wit i i (Iea,

2010). T oiti ei c-pti dpt (oecd) tit tt

ii ti i 10 p t 2050 i t ii i

pti 2020 (Iea, oPec, oecd & W bk, 2010).

T ti ti pi i t t pit p i kt. T pi

iti tw pt i t i i t i- p

i (g, 2011) wi, t iit, pti t pt- i.

m t 80 p t tiit t i Ii i t 20102011 w i

(fi 12). a wt pti tiit t pt p i ppi

i t it.

T pii tiit t t it t i tt t

wt t t-w it pp t, wi i t t i wi

t wt t (sit, 2010).


27/44



Coal66%

Lignite3%

Natural Gas12%

Multi-fuelNegligible %

Diesel1%

Nuclear3%

Hydro14% Bhutan Import

1%

Source: Central Electricity Authority (CEA, 2011)

Fu 12 Pca sha f Vau Ful ovall elccy ga,

20102011

2.4 wh wul b h w a L fm

ey suby rfm?

aii pi t iti i p w t ipt i t

t i. It w p pi wi t tpt-t xpit.

a pi wi piti ipt t i t. It wi t

wi itt xpit ii kti pi t t ti wi

i i pt pi t it i xpti pti tiiti.

T wt pi wi t it i pi tt

tti . mkt- pii wi iitt pit

p t t t ti kt pt pt, wi i t wi t

ptiti kt.

eiit pii wi t ptiti kt tw it tp

it tw iit .

ntwitti t it t i pi t t i,

ii w t i i pi wi, i t, wi ipt t t


28/44

26


, t t i t t . T i xpt t t it ipt t i

pi iit ipt t t t pi t iti. I iw 20ti ai, ai, mi et lti ai, g t ., (2010) tit

tt i 25 t p it i pi w i t 5.9

p t.18 hw, wi t i i i tt, i pi ik t t

t p t i it. a i pi w t ipt t

t t p i--i t i . It i t iti tt tp tw i

t ii p wit qt t itit t ipt p .

d t t iit ipt t i, i , pi i

i tiit19 wi t t iti t. ai t t rbI (2011) pii

tit w tt 10 p t i i pi, i p t t

ti pi, it ipt 1 pt pit i i W Pi

Ix (WPI) iti t tt ipt t 2 pt pit ti ipt

t i tt t i tpt pi t.

2.5 wha Pla rfm sub Hav B Auc

by h gvm?

Pl ha b ula . . .b t ti t expt gp vi sti st Pii

Pt Pt d. Kiit Pik (gI, 2010), t t i t

t i i pt pt. Pt pi w iiz J 2010 it w

pt tt i pi w w it.

. . . l pc hav fll u

T t n 24, 2011 tt i pi ti pt

wi t t i i t iti. a i i i pi w t i ii it i tpt pi. Ti w, i t, it i pi

iti. rt, t Ii p pit t -ti w Inr 53/us$

t ii t ipt i t i pi pt pt wi pi

t p wit itti t. Ti xt t i i ii

(mj, 2011).


29/44



ruc ax

I t t t i pi i , t t t

i t ti 5 p t t i J 2011. ct ti pt

i w 7.5 p t t 2.5 p t t pt pt

10 p t t 5 p t. sii, t i xi t i t i Inr

2/it. m, i J 2011, t fi miit tt t t i

i, k ti lPg (P iti b (PIb), 2011).

B a

T tt tt iiz lPg ki i , t t it ititi t rji gi gi lPg vitk yj (rgglvy). Ti p w

i ot 2009 iiti it tt 1,200 ititi t. T p

t p i i t, wit t omc tki t t p 2,428 itit i

23 tt ui Titi (uT). a spt 2011, ltt Itt (lI) i

1,062 ti, wi 581 itit ii (mPng, 2011).

Lk ub h Uid?

T t tpt tw it t k lPg

ii t t/iq Id wk. a tk i n niki, wi i ptti tip t iiti ptt, w

ppit t p it i it ii t iii ii w

tit t k, lPg tiiz (PIb, 2011).

Iiti, t tk w t t p t wk it t ii

t i t IT t, t t t t p w xt (i J

2011) t i:

I. Itii ti qi i t xiti t, p

p, IT wk pp i t;

II. ri ititti i t ipt t IT tt Pds;

III. exii ti ipt ti it t ii

k t it iii wit t a (uiq Itiiti

), a tti a ttiti itt.


30/44

28


a iti pt t Tk f w i J 2011. T pt t

pt c si mt st t it i tt i i ta e bk at.

ri lPg, t Tk f ii t p: p I w p iiz

i p wit ttiti wk; p II w it it t t k

t t iii; p III w i ti tti t

it t t t t . I t k, t Tk f it

t t stt gt/uT aiitti i P I it t t t t

t iii i P II. Pit pjt iti ti lPg t a

t t w i t iti h m.

T uId , w, itiiz i ti t ptiit t,

it itit tt, t t p i ptii t t t

ptiipti i t p.20

dc af f LPg uby

nt, t tt t a P it it t

dp ii t lPg bPl ii. u ti , wi w

i 1999, t tt t wi t iiti Inr 1,000 tii w lPg

ti t w w w pt s hp gp (shg) (undP/esmaP, 2003).

elccy uby fm ma laly uxpl . . .

etiit i t t t tt . etiit ti t j

t i w ti t t tt t t pt t pi

ppt t ti. Wi t etiit at 2003 w it wit t i

ipi ii i t t, tt-w tiit tiiti ti t .

rual lccy chm

gt ik t rji gi gi vitik yj (rggvy) iittit ti p t t tiit i. T ii p

tiiti pi tti t k.


31/44

WHAT DO WE KNOW

ABOUT REFORM OF ENERGY

SUBSIDIES?


32/44

30

SECTION THREE | WHAT DO WE KNOW ABOUT REFORM OF ENERGY SUBSIDIES

3. wha d w K Abu rfm f ey sub?

at ii p t i t t p, w t it t t

tt p p ii t k . f t pp,

xpit tk p pti ti t t it t wt. a

i i pi pi iti pt p ii

t. a ti, pt Ii ppti i w t

pt i, i i pi i t t t . e

pi t iptt piti i. a t t pi pt

pt tiit t wit ppiti tt t t tki

t itt pi .

bt i i ipt i w tt iiiz t ti ipt

p . a it pii ti t w t t

titi w ii. T pii p it tw ti: t tt

pi it t p t tt p t it t t

ppt . T t (wi i t -t

iiti ii wit ii ti ipt) qi pi tt wi

titi ppt pii (l, bt Pt, 2010). r it t t

t i, w it t it itit itiiti t t ik t ipt it wi p i t tt.

suby fm ca b a

mplm a ay ha mmz h avmpac p huhl.[ ]


33/44



3.1 Plc supp P Huhl

ri ii w p t t pp. b ti t

t p tt it tt t p, t t w it

ii (tt t it t i) t t t i . T tw i w tt

t ti: t i i pi.

l t t pp w Ii xpi. I 2005 2008,

t Ii t t c T ait p (bt l Ti

blT) t ppiti t pi i p p ii p wit i

t. T p pi tw pt Inr 300,000 ( us$30) it t p ii

(Wijj, 2009). T blT w pi t-t t t f si

rti cpti P (P Kpi P sii b bk mik

PKPs-bbm). T p pi tt ppt t p ii i

pi i t ti, t itt (bt & lt, 2010).

I iw t pii, bt lt (2010) i tt t w

i iti p i ppiti t pi i. ai t

i iw t 2005 blT p, itti i tt t ti w, t

jit i t i t t pi (htti, t ., 2006).

hw, t w p. s t w ipppit i

ipit i t i pt, wi t i i t (c & s, 2011). T

ii t pt t ti tti t iitt t , i

t i i . a t iptti t blT w t tk it t

pi xpi t tt tti, t it

t ppt i ii.

a tti pp w t ik pt t i tt it it

pt. citi c T (ccT) qi ipit ii t it t ti

tiiti, t t i t ti. mxi optip i . It tt wit ppxit 300,000 ii i 1997

t 5 ii 2009 (fizi & s, 2009). siiit t t

t iit tt t p i iti t p. mxi p w

t p wit ti t i- ii, t it t pi xp

i t t tt t pt pi i wi xiizi

pt t.


34/44

32


I Ii t, i t ipt t ppt ti

t. mt t p it tw pwt w ipt. at t t , p ik t dki s (2008), Ji sk

yj (2005) bik sii yj (1997) it. at t tt w,

it i Ti n, gjt, Wt b, di K. hw,

t t i pt.

atti i pi ( i iiti) i

t ti. J, xp, ppt i i 2008 ii t ii

w pii i t w-pi t p. a -ti w

i t w-i t p pi tiit ti w iti

t w . I t , Ti iitit ix-pit, ix-t Thb46 ii (us$1.3

ii) p t p t p i p t i itti i pi. T p

tiit t t i t 80 kiwtt- t ( t t

i t 150 kiwtt-), i t 800 i pt

t tt- bkk m Tit atit titi, wt t it 50

i t, xi xpti t-i i, ii lPg pi

(Kji, 2009).

T t pti titi ppt wi t-pii, pi t

iitti pit t t i. Tt t qi ttt p itii i i ti. a pqiit t pii

p t tiit i pi tiit . W itt t

xit, t i i pi t pi t ii, ,

, pi tpt, wt itti itt.


35/44



3.2 g Pc supp rfm: L fm

aal xpc

T w i wi ii iit t titi t kt pi i

pi ppt . g pti i iti pi, tk

tti, tp t pi, p-t ii iti

t ipt iptti wit jtt i .

3.2.1 Cmmuca

Iti pi iptt t i tt. fxp, i 2005 t Ii t ipt pi ti pi i

t i pi ii ppt . I tt wit

pi ttpt t i pi, t 2005 t wit tti ppiti

(bt & lt, 2010).

Pi ti pt i pi

pii iti pi , pi ti itti pi,

iti t pi, t piti k pt pt pi (

ipt pi, ii ititi t tx) (W bk, 2009).

ci, xp, t tp t it ii pii pii.

T nti e cii ti pi tt, it pi t nti

Pt cp pi wk i ii t pii. Wi ci ti

ii, tp p t pi t t pi tti p t

w iizti t ti kt.

c iti wit tk t pi i k t ti

tt. I tk ptiipt i t ii-ki p t ii, ppiti

t i tk it t i ii pii t t

titi. Pi w pi p itiz t t w i

w ti it t t i t t t i t w tx.


36/44

34


3.2.2 gaual Pha-u

a p-t ii i ipit ti t jt. T i

i p, t iit it wi t t t ik ti qi

. sii t t pi titt ttpt t

t piti z (stik, 2007). I d 2010, t bii t

ti i t t pi iiz , ii pi 80 p

t, wit w ppti t t titi. T t w j pi k

pi ittt ii t t. I 2012, t nii t

ii tp wit itt wi. Ti t it tik,

ppti t t t ktk. T dt gt Itti Zit(gIZ, t g pt ) tt t i pi jp

10 p t p jtt w ititti ; gIZ t ipt

it (.. t) i, ti.

hw, t ppt t t t qik. fi i pi i t

2008 pi pptit t t tk pi i ,

ii ci, etipi vit (Kji, 2009).

3.2.3 M a Ajum

miti jti i i i t wt

ti, k wt t it ti q, pt

pii ti (l, bt & Pt, 2010). Tp it pii qi

iti i t tt t it i i t tt p tt ppt

t ti tt it t.

fi, t pti t pt i p t pt t t i

i pii i i t t. gt wi w p t pi

t it w pi i. mkt- pii ipt i tt

t ptiti tp i pi w t t tt titiz tt pi itt itti , t t t.


37/44



3.3 Cclu

T t i ii i Ii i t t

iit i i t it iii. I Pds k,

- k pt, wit t 40 p t t i it tw -

Pds . I t lPg, pti t ii t i , wi

t p kt pi t .

e ii iiit i iiti t i

tiit. I i ii t pt pt -xpitti

wt iiit pti tiit i

t .

sii pt t p ti i pi pw t tiiti, wi

ii t t t. et it t tiit i kti t

i iit pit pi, wi t t t t tiii w pi t

wi t t .

at t ti, w, i t pp . c i pi t

t pt ti t ppti t t. expi t w tt tt

wi t ppiti i t pi i t pp t i, i

pt pii t it t ptt t p. Tt p wi t i

i it t itii t pppit t pt t

w ii pi i . a pqiit t i t p

i w t pp i t pt i i

ii, ii ti ti t it.


38/44

36

ENDNOTES | A CITIZENS GUIDE TO ENERGY SUBSIDIES IN INDIA

4. e1 sii pi k itit t t pi ititi t (Pds) w t i t ti

t t it fi Pi sp (fPs). Wt, i itit t t Pds.2 sii pi 14.2 k lPg i wi t . siiz lPg i t ti lPg

i t , i.., iti .3 a i-piip pp ti t i pi w i, t tt t pp t t piti tiit

i itti i pi.4 dti txt i t 5 si it pt tiit kt pt ptiti, t t kt pi it tti i t

kt.I pt pt kt t t t ipt pit pi. T Pit Pi (TPP) i wit ipt

xpt pit pi i ti 80:20. Ipt Pit Pi i t q t t ti pi qitipt wi tt it i t w pi, tpt t ti. sii, xpt pit pi iq t t pi tt p t xpt t t it pt i xpt.I tiit kt, pi ti t-p i.

6 Itti ptiti kt pi t pit i i ipt pit i lPg K.7 upt noc t pi wi i i xpti pti i .8 at x t Inr 45.58 = us$1 20102011 (s: rbI, 2011).9 Ti t iti (i.., ) i Ii.10 f it, i t tt Ti n Pj, tiit i pi t t t it t.11 T iiti ti tt xit t ti t xtt pt iqit. T

ppxiti i t Pi cii tit t ti pt i tit pt it ei s 20102011.

12 Ti pt pi iti t ititi pi i 15 tt.13 btw api J 2011, t pi i w us$120.58/ wi t pt pi iz

us$49.96/: t t w it t t ii (mPng, 2011).14 f it, e oi iti i pi t t i t t t noc pi ti t t .15 T - ptt t i ti i t - p t i

i t rpt t nti sp s oizti (nsso).16 T iiti t ti ( t t ii) i tt t t.17 a i i ipi tt t i i p i w t ti i t tt ppti.

sii, i i ititi ipi tt t i p i w t ti it tt ppti.

18 It t tt t tit -t ti t t t pii t Ii.19 T t itit pti t iti i i it tptti.20 T uId i wi w it i t Wit si Pit jt t Pit sti citt

tt t i t. T t t uIdaI , w, xt t t iti t iti 40 ii it tki t tt pp t 200 ii.


39/44


ENDNOTES | A CITIZENS GUIDE TO ENERGY SUBSIDIES IN INDIA

5. rfcbt, c. & lt, l. (2010). Lessons learned from Indonesias attempts to reform fossil-fuel subsidies.

g: g sii Iititi.

c, l. & s, m. (2011). mitti t, i pit tti, i i Ii.

m: m uiit. rti ttp://.../~i/pp/blT_JPe.p

ct etiit atit (cea). (2011, api). Operation Performance of Generating Stations in the

Country during the Year 2010-11: An overview. gi opti dititi Wi, optiP miti diii, ct etiit atit, miit Pw, gt Ii.

cw, r., mi, n., Pi, r.K., & sit, l. (2005). Pt Pii i Ii: bi ii

qit. T e r Ititt (TerI).fizi, a., & s, n. (2009). Conditional Cash Transfers: Reducing present and future poverty. Pir rpt. Wit, d.c.: W bk. rti ttp://it.wk./InTccT/r/5757608-234228266004/PrrccT_w_.p

gI. (2010). Indian Petroleum and Natural Gas Statistics 2009-10. nw di: ei diii,miit Pt nt g.

gI. (2010). Report of an Expert Group on a Viable and Sustainable System of Pricing of PetroleumProducts. nw di: miit Pt nt g, gt Ii.

gI. (2011).Non-plan Expenditure by Broad Categories.

expit bt. v. 1, 2011-12. ui bt2011-12. ui bt ei s, gt Ii. ai t

g, m. (2011, spt 12). di ct bt, mti swit, vkw P, f fit,hi v i pt . Economic Times. rti

ttp://ti.iti.iiti./2011-09-12/w/30145140_1_i--pt--ti-x4

g, J. a., c, d., & gii, r. (2010, spt). The Unequal Benets of Fuel Subsidies:A Review of Evidence for Developing Countries. Wki Pp WP 10/202., Wit d.c.:

Itti mt f.gsI Iesr. (2011).A Citizens Guide to Energy Subsidies in Indonesia. g sii Iititi Ititt eti si r. 2011.

htti, T. n., u, s., sk, b., biti, s., Witi, W. d. t.. (2006). A Rapid Appraisal of theImplementation of the 2005 Direct Cash Transfer Program in Indonesia: A case study in Five Kabupaten/

Kota. smeru r Ititt. rti www...i/pt//t/t _.p


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38

REFERENCES | A CITIZENS GUIDE TO ENERGY SUBSIDIES IN INDIA

Itti e a (Iea). (1999). World Energy Outlook 1999 Insights: Looking at EnergySubsidies Getting the Prices Right.

Ii T. (2011, J 24). Diesel, Kerosene, LPG Prices Hiked; Govt says increase minimal. rti

ttp://iit.it.i/t/t-ik-i-p-pi/1/142654.t

Ji, s. (2010, J 27). f Pi dti i h t st. The Hindu. rti

ttp://www.ti./w/ti/ti487614.

Kji, m. (2009, J).Government Response to Oil Price Volatility: Experience of 49 developing

countries. extti Iti dpt si #10. Wit, d.c.: W bk.

Ki, K., hp, J., ft, v., & W, Q. (2005). Wt, etiit, t P: W it

tiit ii? Wit, d.c.: W bk.

l, T., bt, c. & Pt, b. (2010).Strategies for Reforming Fossil-fuel Subsidies: Practical lessons From

Ghana, France and Senegal. g: g sii Iititi t Itti Ititt stidpt. rti www.ii./i/t/tti_.p

mj, a. (2011, d 11). at t: Pt pi itt piti t t iti. Business Today. rti ttp://it.it.i/t/pt-pi-piti-ti-t-i/1/20355.t

miit fi, gt Ii. (2011). Economic Survey 2010-11. ai tttp://iit.i.i/

miit fi, gt Ii. (2011-12). ui bt 2011-12. rti ttp://www.iit.i.i

miit Pt nt g (mPng). (2011). Background Material for Economic EditorsConference. nw di: ei sttiti diii.

miit sttiti P Iptti (msPI). (2011). e sttiti, 2011. nw di.

nti ci appi ei r (ncaer). (2005). Comprehensive Study to Assess theDemand and Requirement of SKO.

nti sp s oiti (nsso). (2010). Household Consumption Expenditure in India2007-08. miit sttiti P Iptti, gt Ii.

oi Ii liit (oIl). (2011). Ptti It at mt at 25, 2011. rti ttp://www.i-ii./Isi.px

Pt Pi ai c (PPac). (2011). Under-recoveries to Oil Companies on Sale ofSensitive Petroleum Products. Pi api 28, 2011. rti ttp://pp..i

PPac. (2011). Historical: Consumption of Petroleum Products. rti ttp://pp..i


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PPac. (2011). Fiscal Subsidy on PDS Kerosene & Domestic LPG. Pi m 3, 2011; rti

ttp://pp..i

PPac. (2011). Contribution to Central and State Exchequer by petroleum sector. Pi J 5,

2011. rti ttp://pp..i

Pi cii. (2011, d). Report of the High Level Panel on Financial Position of

Distribution Utilities.

Pw fi cpti liit (Pfc). (2010). Report On Performance of State Power Utilities for the

years 2007-08 to 2009-10.

P, m.P. (2008, J 4). lk tit lPg ii. The Hindu. rti

ttp://www.i./2008/07/04/ti/2008070460291000.t

P Iti b (PIb). (2011 2011). rti ttp://pi.i.i/wit/as.px

rj s. (2010). Response to the unstarred question no. 2274 on Misuse of Domestic LPG cylindersby commercial establishments, w n 30, 2010.

r Iti st dpi cti (rIs). (2010). Fossil fuel subsidy reform inIndia: Addressing the challenges. rIs Pi bi, n. 45.

r bk Ii (rbI). (2011). Table 1: Macro-Economic Aggregates (At Current Prices). Pi spt 15, 2011. rti ttp://www.i..i/ipt/Pitiviw.px?i=12692

rbI. (2011).Macroeconomic and monetary developments in 2010-11. Pi m 2, 2011.

r bk Ii. rti ttp://www.i..i/ipt/Pitiviw.px?i=13333rbI.(2012).Macroeconomic and monetary developments third quarter review 2011-12. Pi J 23, 2012. rti ttp: //i..i/ipt/aPiti.px?=mi

mt dpt.

sit, P. (2010, J 9). f pw pti pj wt: mtk. Indian Express. rti

ttp://www.iixp./w/-pw-pti-pj-wt-t/631292/

stik, r. (2007).A subsidy primer. g: g sii Iititi t Itti Ititt

sti dpt.

uit nti dpt P (undP) W bke st mt ait

P (esmaP). (2003).Access of the poor to clean household fuels in India.

Wijj, m. (2009). a i i iw Ii dit c T P t Pfii, y 2005. rti www.pp.//itti/ip2009/i/w/1101.p


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40

ACKNOWLEDGEMENTS | A CITIZENS GUIDE TO ENERGY SUBSIDIES IN INDIA

Acklm

Ti i i jit pti T e r Ititt t Itti Ititt

sti dpt g sii Iititi (gsI). T t a si,

ait cttj, Kik rj bp, K l d vi-d.

Ti i t it t iit t xpti m. a. s,

m. P. K. aw, m. r. K. bt m. d. mj.

T wk t gsI t tk witt t ppt t

t t uit Ki, dk, nw, w t Wii f

hwtt fti.T iw xp i ti i t i t t t gsI ,

t ttit t t.


43/44


44/44

th iaal iu f suaabl dvlpm' glbal sub iav

T Itti Ititt sti dpt (IIsd) t g sii Iititi (gsI) i d 2005 t pt ptit ii t pi t pit itt w t i t t pt t w pt twti pt.

sii pw itt. T p itit i i pi tt w twi i . bt t i t. T itt it t t iti i ijk pi pi. T, t gsI tt tpi tt tp pi tiit t tt i pi xpit t t t i p.

bt t ti t. e w ii itit itt pi pi, ti i ti it pp t ti tt. a t t, t it q p i ii w t iti t p. mwi, t itiz w t t i i i t k.

W ii t piip t pptti t i ti t, i t t t i itti, t qti t k: I ti w txp wt ti pt? a t, t ti tx, ppt tpti t? eiiti ii w p t ppt wt . T gsI t tw t ti itii pti ii i tt t t tt tt t ii it,i i ti tt t t i t pt t pt p i t w.

T ti, t gsI, i pti wit wi itti twk i pt, k t jt wt

pi ii i; t pi t w t pti tt i; t p pi pi-kwit t t t t ti t iti pt.

.lbalub.

T gsI i iititi t Itti Ititt sti dpt (IIsd). eti i 1990, t IIsd i ci- t--pit izti wit i t t 150 pp t i t 30 ti. T gsI i qt i g, switz wk wit pt t t w. It piip i t t dk, t nt, nw Z,nw, sw t uit Ki. T Wii f hwtt fti tit t i gsI iti tiiti.

F fuh fma cac M. Ky La a: kla@. f@lbalub. +41.22.917.8920

th ey a ruc iu (teri) i i i pi ititti itt t wki ti

pt. T TerI iititi t t i i qit, ii pti tiizti . T ititt w ti i 1974 wit t pp tki i wit t i t p ttki i ik t i t

t t pti t t' iit wi -w;

t t xiti t ti wi pti.

o t , t Ititt p wi itptti ti pp it ppiti. cqt, TerI t it tt i i, i ipii t pt ti t p i t i , it ti pt. T Ititt wt ti, i ii t t t i i t, pp tt k t pt t . TerI w t ti p t i it i Ii t i pp t pi t ititti t ti p i nt ai ep t ai tit

i Jp, mi t g.TerI ct r e sit (cres) ti t Ititt t wk i tti i pittpi i t i, i i, piti t, t pt, itt, pii ti. T ct i tiipi pi titk i it, wk tw itti ptip wit ititt .

T teri Uvy w ti i 1998. Iiti t p t TerI s a sti, it i t tt iit i1999. T uiit i iq ititti i i xi p i t Pd mt . It iqi i t wt i t witi TerI w it t ttki it i - uiit.

daba sh Blck, iHC Cmplx, Lh ra, n dlh - 110 003, indiA

tl. (+91 11) 2468 2100 a 41504900 | Fax (+91 11) 2468 2144 a 2468 2145 | F al qu cac: malbx@..

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