STATES ASKED TO FUND THEIR OWN POWER SUBSIDIES

In perhaps the first decision taken by our new power minister, Mr PM Sayeed, he deserves congratulations. Let us hope that there is no pressure to roll back this tough stand, asking States to provide subsidised power to farmers from their funds.

One hopes that this will see the end of the "drug regime" where cash subsidies, like wonder drugs are injected ostensibly into the food sector by bleeding another artery in the economy to reduce food costs. Such a regime rarely benefit few other than rich farmers, it leads to side effects, addictions and withdrawal symptoms, as we have seen in several States. Ironically, these "addicted" States happen to be large food-grain producers, enjoying the best of the irrigation, fertiliser and power policies.

Here is an excellent chance for innovation: Instead of viewing the farmer as an energy guzzler and food producer, the farmer should be seen as a fuel and compost supplier, to be given wheeling or energy credit against supplies of biomass.

In the food-grain sector, every 1.5 Kg of husk and 1 kg of most types of wood each result in delivery of 1 KwHr of electricity, when fed to gassifier-generators. Similiarly, the calorific values of most varieties in grass, twigs, leaves and plants have been well established as viable feedstock for biomass composting and gassification. Further, plenty of documentation is available to suggest that, in fertile lands as the grain-producing states have, as little as 3 to 5% of land holdings over 20 Acres set aside for 'energy plantation' can make these holdings self-sufficient in energy, by deploying the right equipment and techniques.

The MNES and its SNAs have done extensive work in promoting and developing biomass-based power projects, while IREDA and other bodies also provide international institutional funding for biomass-based power generation projects. As per MNES's 2002 figures, biomass accounted for 11% i.e. 381 MW out of 3513 MW totally generated from renewable sources - solar, wind and small hydro comprising the remainder. As for employement, biomass provides 1905 jobs out of 19985 jobs in the RE sector and these are slated to grow proportionately.

Additionally, India is the largest sugar cane producer while 60% of bagasse or spent cane is wasted. Its ability to yield economically attractive amounts of fuel gases is also well known. Some initiatives have already been taken in this direction. Bagasse-based power plants are coming up with public-private sector partnerships in several locations and MNES therefore projects a 28% share for biomass in 2012 including bagasse, at 3000 MW out of a total expected 10680 MW of power after adding waste-to-energy, solar, wind and small hydro based systems.

Likewise, vermiculture and other composting techniques for production of organic fertilisers are also very well documented and have been implemented on a reasonably widespread scale, though not intensively, for lack of a policy and administrative direction. Ill-effects of chemical fertilisers are being increasingly reported. While not promoting a mono-culture, a farmer may gain by using a mix of both types. Alternately, farmers can be alloted chemical fertilisers in exchange of compost supplied by them to a central or cooperative pool - or a higher level of energy credit for composted biomass.

Energy cooperatives are not a new concept, as experiments since the late 80s at Khandia Village in Baroda Distt in Gujarat under the aegis of GEDA and execution by Jyoti Ltd have shown. If the Power and Nonconventional Energy ministries join hands, say through the SEBs and SNAs in each state, farmers can avail of energy credit against all bio-wastes collected from them, which will incentivise them to produce more. The state administrations can aslo club together smaller holdings under a single command area. This way, energy cooperatives can be formed, possibly linked by the PDS infrastructure as well to distrubute and exchange produuce from one command area to another.

We have the capabilties for self-reliance in power, we have proven these in a number of scatterred ways and it is now time to consolidate these as the only way forward and make the Indian food sector a great power in itself.

Sincerely,
Udit Chaudhuri - Director
The microPower Initiative

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