Chhattisgarh Energy Sector Heavily Favors Fossil Fuels Over Renewables Despite Subsidies, Report Finds

A recent analysis by the International Institute for Sustainable Development (IISD) and the Swaniti Initiative highlights a significant imbalance in government support for Chhattisgarh's energy sector. In the fiscal year 2024, the state received over INR 16,672 crore in total government backing. Of this, INR 12,648 crore was provided as subsidies and INR 4,024 crore as investments by public sector undertakings.

The report, titled 'Mapping India’s State-Level Energy Transition: Chhattisgarh,' found that fossil fuels, especially coal, received the largest share of quantified subsidies, accounting for 26%, while renewable energy received only 8%. This indicates a strong preference for traditional energy sources.

Furthermore, Chhattisgarh's economy is deeply intertwined with fossil fuels, which contribute 80% of its energy-related revenues, amounting to INR 22,532 crore (22% of the state's total revenues). Coal alone generated 38% and oil and gas 40% of these revenues.

Impact This heavy reliance on fossil fuels exposes Chhattisgarh to significant risks from global energy market volatility and the transition to cleaner energy. The report urges proactive fiscal planning, energy resource diversification, and revenue stream expansion. Recommendations include aligning government support with net-zero targets, better targeting electricity subsidies to low-income households, and redirecting savings into renewable energy projects like rooftop solar and solar pumps. This strategic shift is crucial for protecting jobs, ensuring long-term economic growth, and achieving the state's vision for 2047. Rating: 7/10

Difficult Terms Explained: * Fossil Fuels: Energy sources like coal, oil, and natural gas formed from the remains of ancient organisms. * Renewable Energy: Energy derived from natural sources that replenish themselves, such as solar, wind, and hydro power. * Subsidies: Financial aid provided by the government to reduce the cost of essential goods or services. * Public Sector Undertakings (PSUs): State-owned enterprises. * Net-zero targets: A goal to balance greenhouse gas emissions produced with greenhouse gas removed from the atmosphere, aiming for zero net emissions. * Fiscal Planning: The process of managing government revenue and expenditure to achieve economic objectives.