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Context: India should not solely focus on the end goal of decarbonisation. First it must try to ‘green’ its fossil fuel energy bag by increasing the share of natural gas. Key Points
What policy changes in the natural gas supply chain are required to green its fossil fuel energy bag? To explain the scale of the answers, here are four key policy suggestions:
Firstly, the experts must highlight the significance of natural gas. They must identify its usefulness. It is a competitive fuel and is amply available in and within the Asian/ME subcontinent. It has multiple uses, and it is the greenest of all fossil fuels.
Secondly, the authorities must correct the present deterrent policy biases. The taxation system is regressive. The tax rates increase as the gas flows from one zone to another. This means that consumers situated at a distance from the source of gas pay a higher price than those closer to the source. Gas is not under GST.
Thirdly, the authorities should refurbish the arrangement of the industry. The Gas Authority of India Ltd (GAIL) is engaged in the production, transportation, and marketing of gas. This allows GAIL to influence its rights of the gas pipelines.
Lastly, an institutional apparatus should be created to allow better coordination between the central and state governments. The Center and state have clashed over issues like land attainment, pipeline routing; and royalty payments. This is why India has not yet made a national pipeline grid.
Road Ahead
By: Shubham Tiwari ProfileResourcesReport error
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