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Indian Economic Policy

Notes grade coal and middlings available at collieries and washeries are used for the generation of electric
power. Accordingly, thermal power generation plants are located near coal mines and washeries.
With the increase in the international price of oil and consequently with the rise of domestic price of
oil, the cost of generation of power through oil has shot up and the Fuel Policy Committee
recommended the substitution of coal based technology in place of oil. While the use of oil for power
generation is being discouraged, the success of its substitution by coal depends on the extent to
which coal production can be augmented in the country.
Nuclear Power
Nuclear power is of recent origin and its supply accounts for only 3 per cent of the total installed
capacity of electricity. The Planning Commission has stated clearly : “In relation to the total capacity
of the power systems in India and their rates of growth, the contributions of nuclear power will
remain relatively modest in the coming two decades.” Attempts are, however, made to set up nuclear
power stations in Tamil Nadu, Rajasthan, etc. Considering the relative failure of nuclear power plants
in Russia and in other countries including India, nuclear energy is unlikely to make a significant
contribution to power generation in the country.
Amidst increasing aversion of developed world, it is being said that the future of nuclear energy is
now in developing countries. At present there are 19 nuclear power plants in the country, with a total
installed capacity of 4000 megawatts. In the post Indo-US nuclear deal this capacity is expected to get
enhanced to 60000 megawatts. Five new nuclear power parks have been planned including one in
Jaita Pur, Maharashtra. Other nuclear parks have been planned in West Bengal, Gujarat, Andhra
Pradesh and Tamilnadu. Each such park will have an installed capacity of 10000 megawatts.
There were 436 nuclear reactors in the world. US, Japan and France were producing 56.5 percent of
global nuclear energy production, fulfilling 6.5 percent of energy requirements all over the world. It
may be noted that US fulfils 19 percent of its electricity requirements from nuclear power, but for
some time it is not establishing any new nuclear power plant. Even Japan is producing less energy
from nuclear source. Major reason for the same is that its Kashiwazaki kariwa nuclear plant was
closed down after earthquake in 2007. Many nuclear reactors have retired and they have not been
replaced by new ones. Last year global production of nuclear power came down by 1.8 percent.
Therefore it seems that government of India is extra enthusiastic about the feature of nuclear energy
in India. Strong opposition to Jaitapur nuclear project is a signal to the future resistance, which nuclear
plans are going to face in context to the international experiences.
Targets and Achievements

Table 9 shows how the targets of power generation were not reached in any of the plans completed
so far. In every Five Year Plan there was a shortfall in achievement--15 per cent in the First Plan and
as much as 50 per cent in the Fourth Plan The cumulative result of slackness in this basic area of
planning is that power crisis threatens to choke the growth process of the Indian economy. In fact, it
seriously damaged the targets of the Fourth and Fifth Plans. Accordingly, the Sixth Plan (1980-85)
put maximum emphasis on power generation; even then, there was a shortfall of 28 per cent in the
power generation target. The short-fall of 4 per cent during the Seventh Plan period was the lowest.
The shortfall in the Ninth Plan was a hefty 53 per cent.
19.4 Transport System in India’s Economic Development

Significance of Transport
If agriculture and industry are regarded as the body and the bones of the India economy, transport
and communications constitute its nerves which help the circulation of men and materials. The
transport system helps to broaden the market for goods and by doing so, it makes possible large-
scale production through division of labour. It is also essential for the movement of raw materials,
fuel, machinery etc., to the places of production. The more extensive and continuous the production
in any branch of activity, the greater will be the need for transport facilities. Transport development
helps to open up remote regions and resources for production. Regions may have abundant

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