States would be assured that solar lighting does not jeopardise the right of villages from being eligible for grid connectivity

In times of energy shortage, the government is considering to divert part of LPG and kerosene subsidy for solar power generation to light up the homes of poor.
A proposal to utilise a tenth of kerosene for financially supporting purchase of solar lanterns for under privileged was mooted during the 10th meeting of the Energy Coordination Com-mittee chaired by prime minister Manmohan Singh.
“There is a huge subsidy/under recovery on sale of kerosene oil and diesel and if states are taken into confidence, 10 per cent of the subsidy for kerosene oil could be used for funding purchase of solar lanterns for the poor,” a government official said.
State governments would be assured that solar lighting or electrification of remote villages through renewable energy sources does not jeopardise the right of the villages from being eligible for grid connectivity in future, he said adding the ministry of power has been directed to take necessary action in this regard.
The overall oil subsidy stands at around Rs 2,45,305 crore, a large chunk of which is due to subsidy on LPG and kerosene. “We have been trying to bring the issue in light for the past five years. We are delighted that at least government is considering it because it will help in better utilisation of kerosene and actually improve lifestyle of rural people. A large part of the kerosene is used in lighting of homes,” Teri executive director Leena Srivastava said.
Teri director-general RK Pachauri had earlier asked the government for complete abolition of subsidy on keresone oil used in lamps, saying it is incompatible with the climate change mitigation policy.
“The demand for utilisation of kerosene subsidy is pending since long. If approved, the proposal would also result in improved standard of living,” an analyst said.
However, it has to seen whether the idea to divert the subsidy to fund solar lanterns is feasible as direct help from the governement constitutes a very small portion of the amount.