1.

What role can the private sector play in enhancing access to critical social goods such as health, energy, education and others in India? Pick a sector of interest and propose potential market solutions for its development.
Ans: Energy consumption in India has increased by 10.45% in 2011-12, much aster than the !"# gro$th o %.2%. &he country's hea(y re)iance on crude oi) and recent)y coa) imports to meet rising domestic demand ha(e resu)ted in $idened the isca) and current account de icit in recent years. &his burden o i))ing the gap o energy supp)y and demand is too big or go(ernment to bear. In this scenario pri(ate sector has )arge ro)es to p)ay to ensure that energy supp)y. &hey can contribute in many orms inc)uding the de(e)opment o energy pro*ects and po$er p)ants, technica) ad(ancement through research and de(e)opment, inancia) in(estment and acti(e thin+ tan+s.

POWER GROWTH PERSPECTIVE: &oday, India can $e)) be identi ied as an energy gu,,)er. &he demand or po$er is gro$ing e-ponentia))y and the scope o gro$th o this sector is immense. India.s po$er supp)y-demand gap has a(eraged bet$een / and 10 per cent o(er the )ast decade $here e)ectricity access e-ists. 0y 2012, India's energy re1uirement to touch 235,222 45 6and pea+ demand 1,531,030 457 an increase o 81.2% and 44.8% respecti(e)y rom the current demand. India.s grid-connected po$er generation capacity $i)) need to sca)e rom 14/!9 current)y to 4%0!9 by 2080 $hi)e the country.s primary energy demand is e-pected to gro$ rom 400 mi))ion tons o oi) e1ui(a)ent to $e)) o(er 1,200 mi))ion by 2080. It is eared that by 2080, the country $i)) import 24% o its petro)eum re1uirement. 5ndoubted)y, rene$ab)e energy appears to be the most p)ausib)e option or the country to re)y on. &he a(erage per capita consumption o energy in India is around 500 9, $hich is much )o$er than that o de(e)oped countries )i+e the 5nited :tates, Europe, Austra)ia, ;apan, etc. <o$e(er, this igure is e-pected to rise sharp)y due to high economic gro$th and rapid industria)i,ation. !o(ernment o India aims to increase the per capita consumption o e)ectricity to 1,000 units by year 2010, en(isaged a capacity addition o 100,000 49 to meet the mission o =#o$er or A)) by 2012. India's energy demand is increasing $ith the robust gro$th in economy. A steady orecasted gro$th or manu acturing sector $ou)d need more po$er generation in uture. <o$e(er, po$er generation through ossi) ue) RENEWABLES IN INDIA: POTENTIAL & PROSPECTS: India is the 4th )argest country $ith regard to insta))ed po$er generation capacity in the ie)d o rene$ab)e energy sources and much is $aiting to be disco(ered by it. 9ind, <ydro, 0iomass and :o)ar are main rene$ab)e energy sources. &he country has an estimated rene$ab)e energy potentia) o around /5,000 49 rom commercia))y e-p)oitab)e sources: 9ind, 45,000 49> sma)) hydro, 15,000 49 and biomass, 25,000 49. In addition, India has the potentia) to generate 85 49 per s1uare +m using so)ar photo(o)taic and so)ar therma) energy. &he mar+et in India or the ?E business is gro$ing at an annua) rate o 15%. &he scope or pri(ate in(estment in ?E is estimated to about @8 bi))ion

KEY FACTORS RESPONSIBLE FOR GROWTH OF THIS SECTOR INCLUDE: Aarge demand-supp)y gap in e)ectricity. India is generous)y endo$ed $ith ?E resources )i+e so)ar, $ind, bio-mass materia)s, urban and industria) $astes and sma)) hydro resources. Ao$ gestation periods or setting up ?E pro*ects $ith 1uic+ return. Bonduci(e go(ernment po)icies. &he )arge number o inancing options a(ai)ab)e or capita) e1uipment POSITIVE FACTORS FOR INVESTING IN INDIA: C E)ectricity demand gro$ing: D /% annua))y C Bapacity addition o about: 22,000 49 re1uired in the ne-t 10 years C &he :i,e o the Indian 4ar+et and the unmet demand: India has a )arge domestic mar+et $ith immense absorpti(e capacity or e)ectricity. According to a study by the 4cEinsey !)oba) Institute 64!I7, India.s consumer mar+et $i)) be the $or)d.s i th )argest 6 rom t$e) th7 in the $or)d by 2025 and India.s midd)e c)ass $i)) s$e)) by o(er ten times rom its current si,e o 50 mi))ion to 5/8 mi))ion peop)e by 2025. C Aargest number o )isted companies - 10,000 across 28 stoc+ e-changes, India has the third )argest in(estor base in the $or)d. C <ea)thy ban+ing system $ith a net$or+ o 30,000 branches is among the )argest in the $or)d. Aarge poo) o s+i))ed, ta)ent and Eng)ish spea+ing $or+ orce. Fther actors that ma+e India as a(orab)e destination in oreign direct in(estments 6G"I7 &hus, Energy issue can be reso)(ed by becoming more innovative in!"#$ive an% inte&'ate%