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Indian Economic Policy

Notes Sources of Energy
Broadly, there are two sources of energy, viz., commercial energy and non-commercial energy.
Commercial energy, or more correctly, commercial sources of energy, consist of coal, petroleum and
electricity. These sources are commercial in the sense that they command a price and the users have
to pay for them. Commercial energy accounts for over 50 per cent of all energy consumption in India.
Non-commercial sources of energy - also known as traditional sources of energy - consist of firewood,
vegetable wastes and dried dung. These are called non-commercial sources, as they are supposed to
be free and command no price. Actually, the non-commercial sources such as firewood and dried
dung have started commanding a price in urban areas and to some extent in rural areas as well.
While commercial sources of energy are generally exhaustible—exception being, hydro-electric
power—non-commercial sources of energy are renewable. More than 60 per cent of Indian households
depend on traditional sources of energy for meeting their cooking and heating needs.
Availability of Primary Energy in India

There are three broad sources of primary commercial energy, viz., (a) coal and lignite; (b) oil and gas,
and (c) electricity.
Coal and lignite : The total estimated resources of coal in India are placed now around 148,790
million tonnes, but the mineable reserves may amount to about 60,000 million tonnes. The total lignite
reserves, found mostly at Neyveli in South Arcot district of Tamil Nadu, are placed at 3,300 million
tonnes of which 1,900 million tonnes are in the proved category. Annual production of coal including
lignite was around 566 million tonnes (2009-10). According to the present and future demand
projections, the coal reserves in India would be just sufficient for about 130 years.
Oil and gas : According to the latest available estimates, net recoverable reserves of oil are placed
around 550 million tonnes, and the net recoverable reserves of gas are put at about 500 billion cubic
metres. Annual production of oil crude is around 34 million tonnes (2009-10). At the current rate of
consumption, oil may last for only about 20 to 25 years.
Electric power : As regards electricity, there are hydro-electric power and thermal power. Thermal
power is generated by the use of oil and gas and also by the use of nuclear energy. The official
estimated annual energy potential from hydro-electric sources is placed around 90,000 MW; of this
potential, about 18,000 MW has been developed. This implies that only 20 per cent of the hydro-
potential has been utilised and 80 per cent still remains unharnessed, despite the inherent advantages
and superiority of hydro power plants over thermal and nuclear plants.
Non-commercial Energy Resources in India

(i) Fuelwood : Fuelwood is essential for cooking and it is extensively used in our villages and
towns. According to the Tenth Plan estimate, 65 per cent of total rural energy consumption is
met from fuel wood. During 2001-02, fuel wood consumption was put at 223 million tonnes—
180 million tonnes for household consumption and the balance 43 million tonnes for cottage
industry, hotels, etc. If the present demand and supply conditions continue, there would be a
veritable fuelwood famine. In fact, scientitsts anticipate that in the near future, fuelwood could
be a greater constraint than the availability of foodgrains.
(ii) Agricultural wastes : Agricultural wastes such as straw are presently used as feed and fodder,
roofing material, organic matter for compost making and as fuel for cooking purposes. There
are no really reliable estimates of agricultural wastes, but according to one estimate the
consumption of agricultural wastes for fuel purpose was put around 41 million tonnes for the
year 1975-76 and it may be around 65 million tonnes now.
(iii) Animal dung : Dried dung of animals is extensively used as fuel in our rural areas (and also in
towns). Out of the total estimated production of 324 million tonnes of animal dung, about 73
million tonnes are estimated to be burnt for energy purposes every year. This is more than the
total fertiliser consumed in agricultural production in India. If this animal dung, which is a
valuable organic manure, was used as fertiliser, food production could be increased considerably.

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