Energy Subsidies in India

How are India's off-grid solar pump policies affecting the water–energy–food nexus? This paper maps out impacts and the key policies that are driving them.

New Delhi, August 6, 2019 – Most coal-fired power plants in India have not installed pollution control technology, although the Central Government revised emissions standards almost four years ago. A new analysis estimates the cost of installing technology to control for sulphur oxides, nitrogen oxides and particulate matter (among others) at between INR 73,000 crore (USD 10 billion) and INR 86,000 crore (USD 12 billion).

It will cost up to INR 86,135 crore (USD 12 billion) to comply with India's rules for air pollution control technology in the current fleet of coal power plants, increasing the average cost of electricity by 9–21 per cent per kWh. The Ministry of Power must take a strict position to ensure compliance.

New Delhi, July 25, 2019 – Until last month, Indian drivers were paying a tiny bit less to fill their vehicles with petrol and diesel thanks to a government decision that was reversed in the recent Union Budget. While the INR 2.5 (USD .03) per litre may not have mattered too much to consumers, it had big consequences in terms of government revenue.  

India’s subsidies to petrol and diesel between October 2018 and June 2019 amounted to almost three times the three-year government budget for electric vehicle (EV) support, according to our new study.

As part of its work on energy policy and sustainable development in India, the Global Subsidies Initiative publishes a regular briefing on issues related to energy subsidies.

This country study and accompanying data sheet compile publicly available information on G20 subsidies to the production and consumption of coal (including coal-fired power) in India in 2016 and 2017.