Energy Subsidies in India

Government concerns about the risk of stressed and stranded assets in the coal sector may be missing the big picture, according to a new independent study by the International Institute for Sustainable Development (IISD) and the Overseas Development Institute (ODI).

This report looks at the impact of subsidies to kerosene and liquefied petroleum gas (LPG) and subsidy reform from a gender perspective across three countries: Bangladesh, India and Nigeria. Download from Energia.

This issue brief takes a detailed look at why such a large share of coal power is struggling today and the drivers—including subsidies—that may cause similar crises to rear their heads in future.

In India’s Energy Transition 2018 Update, the Global Subsidies Initiative (GSI) of the International Institute for Sustainable Development (IISD) and the Council on Energy, Environment and Water (CEEW) published updated estimates of the scale of energy subsidies in India for FY2017, including partial data on the scale of subsidies for FY2018.

IISD in association with PowerforAll has published a factsheet on shift in energy subsidies in India with fossil fuel subsidy reforms, with a specific focus on subsidies to DRE sector. Follow this link to view the fact sheet.

Highlights from the December 2018 edition: Draft amendments to the Electricity Act 2003 proposed in September 2018 include provisions to promote renewable energy, improve quality of power supply, impose stronger penalties for violations of Power Purchase Agreements (PPA), and initiate a direct benefit transfer for electricity subsidies to households. Government says it is likely to exceed the renewable energy tar

India’s fossil-fuel subsidies fell sharply by nearly 70 per cent, from INR 1,73,330 crore (USD 29 billion) in FY14 to INR 52,980 crore (USD 8 billion) in FY17. Between FY16 and FY17, fossil-fuel subsidies declined by INR 12,270 crore (USD 2 billion).