Discuss the energy crisis in India.
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Energy crisis in India can be explained on the basis of the following facts:
- Industrial development in the 18th and 19th century was based on coal, as the leading source of energy. Towards the end of the 19th century, oil replaced coal as the leading energy source. The increase in crude oil prices by OPEC led to escalation of the costs of production. The energy crisis, then, was not a national issue but a global concern.
- The supply of all commercial fuels has been rising but not adequately. At the same time, the coal industry which was expected to meet the growing energy crisis in India has also been inadequate owing to poor quality and quantity of coal reserves.
- The demand-supply gap for electricity has been widening due to rising demands of industrialisation and agricultural growth. The supply, on the other hand, has too many constraints and marked with severe shortages and bottlenecks, erratic and inadequate power supply.
- Apart from balance of payments problem, energy shortages have adversely affected the transport sector, and thereby industrial and agricultural production.
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