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Gas lobby at work-I: Not easy to push gas in India yet
Apr 20: Sponsored by the international gas lobby, a workshop was held by a global university on promoting the use of gas in India.
8What was surprising however was the conclusion that there were big challenges looming ahead.
8The proliferation of renewable energy should ordinarily lead to the use of higher volumes of gas to fire base load power plants in the evening but coal fired power plants were seen to be doing the job in India
8Then again, the likely increase in the price of LNG would make gas usage in India more prone to uncertainty as coal could be a cheaper substitute.
8The study also did not see the use of coal diminishing in India as the Indian government was unlikely to factor in all the externalities involved in the use of coal anytime soon.
8Then again, the laying of a gas pipeline backbone was turning out to be difficult as cross country lines were costly and need government funding to plug the viability gap.
8Opposing views within different ministries handling the energy sector also did not help. The coal and power ministries were supportive of the domestic coal sector, aiming to more than double coal production to 1.5 billion tons by 2020, even though the ambitious build out seemed to be at odds with India’s carbon emission commitments
8So, even as the economy continued to gallop, how the use of gas in India was going to shape up in the future remained a big question mark
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