Munich Personal RePEc Archive

Energy infrastructure in India: challenges and opportunities

Majumder, Rajarshi and Ghosh, Subhadip and Chatterjee, Bidisha (2022): Energy infrastructure in India: challenges and opportunities. Published in: Productivity , Vol. 63, No. 1 (2022): pp. 21-34.

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Productivity is the new buzzword for economic growth in the era of globalization, as countries with higher productivity levels enjoy a comparative advantage over their competitors. Infrastructure is critical in this quest for higher productivity, growth, and development, and Energy infrastructure is a crucial component of that. Long-term planning for ensuring that energy demands are met has become an integral part of policy-making as energy infrastructure requires a huge lump sum investment and has a long gestation period. So, capacity augmentation and installing energy infrastructure in its physical form (refineries, power plants, pipelines, distribution lines, and so on) have to be planned and executed early. In this paper, we first narrate India’s energy demand/consumption trends over the last four decades and then try to forecast future energy demands and related energy infrastructure needs over the medium to long run period of 20 years from 2020 to 2040. Total Primary Energy Consumption is expected to become more than double the current level, and Electricity demand to treble. As a result, coal production, oil refining, gas importing and distribution, electricity generation, and transmission & distribution capacities all have to grow substantially. Thus, we are facing massive infrastructure needs for the energy production sector. The policy implications are also discussed.

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