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| Energy costs make India expensive | |
| BS Reporter / Kolkata December 02, 2008, 0:52 IST | |
India will remain an expensive place of manufacturing, compared to China, due to higher cost of power, caused mainly by inefficient energy consumption, said Jean Joseph Boillot, economist and co founder of Euro India Economic and Business Group(EIEBG) at a session organised by Bengal National Chamber of Commerce and Industry (BNCCI), on 'energy model for India, 2030',
Boillot said, "India follows a highly inefficient pattern of energy consumption.I have toured several industries in the state and also in other cities where ten times production can be achieved consuming the same level of energy than what is being produced now."
China and India were considered cheaper destinations for manufacturing, but India could be different as manufacturing could become less relevant in the near future owing to high energy usage, said Boilliot.
India lacked an aggressive plan for harnessing biomass energy, potentially a more affordable source of energy.
Nuclear power was not suitable for the country since it was a costlier energy source and would not help rural areas considering the cost, warned Boilliot.
India had potential of 1,50,000 mega watt (mw) hydel power but the scenario was bleak as it could have adverse ecological impact as in China, more so in earthquake-prone zones where dams and irrigation systems could be located, admitted Boilliot.
India should concentrate more on solar energy, in which its potential was about 200,000MW, said Boilliot. He said the country could achieve energy efficiency with low gross domestic product (GDP) growth. Boilliot said EIEBG would be taking up two projects in legal process outsourcing and eco tourism in West Bengal, for the labelling and rating of hotels in the city. For the latter, it had identified two Indian organisations and two foreign partners.
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