India’s Fossil Fuel Subsidies have led to a massive growth of the petrol and diesel mafia in the country.India gives subsidies on diesel,kerosene and cooking gas through its state owned petro/gas companies like BPCL,IOCL,HPCL etc.These subsidies have been given for a long time and have led to the growth of a parallel black economy in these products.They not only lead to capital misallocation but also to the massive illegal profits for a few.It is a well known fact that all petroleum pump owners adulterate petroleum ( which power most of the cars) with subsdized diesel and kerosene.This massive racket earns millions of dollars (if not billions) for a network of company officials,pump owners,government bureaucrats and politicians.The mafia is so strong and powerful that it thinks  nothing of burning alive a senior police official.The racketeers are so rich and well connected that despite common knowledge nothing gets done about it.

The news become national when a young and idealistic MBA from one of the premier colleges in the country went against the mafia and was killed.The culprits were only brought to book after a major media hue and cry however the systemic corruption continues as before.The root cause is the subsidy being given by the government.The State Owned Indian Oil Companies have been perpetual under-performers as they are forced  to subsidize the products on behalf of the government which sometimes compensates the losses and sometimes doesn’t.With high inflation,the current government has lost the courage to reform the billions of dollars in losses that are incurring.Meanwhile the Mafia rakes in the moolah and continues in its merry ways.

Malegaon official burnt to death during raid

The additional district collector of Malegaon, Yeshwant Sonawane, was on Tuesday burnt to death by the petrol and diesel adulteration mafia when he went to conduct a raid, police said. He had gone to Panewadi locality in Manmad in Maharashtra’s Nashik district for the raid when he was set on fire, police said.

India’s Transport Policy or Lack of One  makes you think that it is heading towards disaster both from the view of  pollution and congestion.India’s growing middle and upper class is rapidly buying cars while India’s road network barely increases and the current transport network is groaning under the strains already.Indian cities have become a veritable sea of cars chaotically congested and barely moving.There is  no coherent transport policy as India’s per capita income grows and it moves beyond hand pulled carts.While there is huge innovation on the private front with India’s domestic Tata Motors company launching a $2500 car ,the public front is still frozen.

Pollution Concerns increasing by the day

The rising number of cars with thousands being added to India’s densely populated cities has led to a constant traffic jam somewhat comparable to China’s 18 mile traffic jam.The pollution caused by these idling vehicles is horrendous not counting for the fuel wasted.There is little lack of regulation and policing as people drive with little road sense without any danger of fines or punishment.Illegal Car Parking is rampant as unplanned cities have no space for  parking of cars.Delhi the capital of India has the most number of cars and murders related to parking fights are becoming a regular feature.With India’s economy booming at 8-8.5% growth and financial inclusion increasing,buying a car has become extremely easy.Growing Traffic problems has seen some proposals like bringing a congestion tax or only allowing people with parking space to buy cars.But till now they only remain on paper.The latest symbol of aspiration “SUVs” have become a talking point as they are extremely fuel inefficient guzzling gallons of subsidized diesel.These vehicles are totally unsuitable for India’s development and even India’s environment minister has started complaining against them.However don’t expect much in India’s slow moving and almost lethargic policy making system.

Jairam’s red light may send SUVs off track – ET

Environment minister Jairam Ramesh on Friday came down heavily on the use of sports utility vehicles (SUVs) and other big luxury cars that typically run on diesel and have sub-optimal fuel efficiency, saying it is criminal to drive these cars in a country like India. In the process, he stoked a debate on subsidy on diesel—a politically incorrect issue for the country’s political class.The minister’s sharp stand on SUVs is tied to both diesel subsidies and carbon emissions. The government’s estimated subsidy bill on kerosene, LPG and diesel this fiscal is Rs 51,000 crore. While diesel is subsidised because it is widely used for irrigation by farmers and in other priority sectors, rich owners of expensive luxury vehicles that run on diesel are also unwitting beneficiaries of this subsidy.

Congestion Reachese New Heights

Traffic Congestion and Jams have become so frequent that it seems that they are a constant feature.Traveling in Indian cities has become a nightmare especially if you are thinking of traveling during peak office hours.Here are some of the regular problems arising from these congestion.Note these don’t apply to India’s business and political elite as the police clear roads during their  sojourns in the cities.It is only applicable to the common man.

1) People dying in ambulances – With miles of traffic jams,its almost impossible for ambulances to navigate a way leaing to hours long journeys.People dying in traffic jams has become a regular feature,so if you stay in India and are not part of the society elite,try and stay near a hospital.Your life may depend on it

2) Road Rage - This has become a frequent occurrence too with people getting irrationally angry and irritated during jams.This has increased incidences of road rage which frequently leads to killings.

3) Missed flights and appointments – Time bound assignments are often missed due to cray traffic congestion.Missed air flights have become common.A bonanza for India’s airline operators and a huge unsolved problem for flight takers.

4) Parking Fights – Most of Indian cities are unplanned without any parking for most houses.This leads to a huge problem in terms of illegal parking.Even Legal Parking sees fights between neighbours leading to fights and sometimes even deaths.With thousands and millions  of car hitting the roads every day and month,the problem is growing even more acute.No solution in sight as Indian politicians happily line up their pockets in corruption scams.

Summary

India’s Transport Policy is a total mess with no solution in sight.Public Transport is not given enough money or resources to make a difference while Indian auto companies are making huge profits.Construction of the recent Metro Railway to Delhi’s satellite city of Gurgaon has already been filled to capacity not reducing the pressure on the main highways which remain chock a block with cars 24 hours a day.India needs to massively invest in public infrastructure and dis-incentivize private modes of infrastructure like cars through congestion and fuel taxes.

Pennsylvania is the Ground Zero for Shale Gas Development globally with more  than 2500 Gas Wells in Operation.The State is situated on top of the Marcellus Shale Gas Formation which is one of the world’s biggest.It has attracted a huge amount of investment from both big and small oil and gas companies globally.Indian companies like Reliance and Chinese Companies have bought stakes in Shale Gas Developments in Pennsylvania to develop expertise in this Gas Extraction Technology which is perhaps the biggest game changer in Energy in the last couple of decades.Shale Gas  has grown exponentially in this state with around 25% of the state’s forests now being prospected and huge amounts of private land also being developed.India and China the biggest energy growth markets are now planning on auctioning off their own shale gas deposits for development.This makes the technology being developed and improved in Pennsylvania crucial for the Big Oil and Gas out there.

Shale Gas Development in Pennsylvania has not been above board

Shale Gas has questions being raised about its environment friendliness with a huge number of reports of its water contamination features.The controversial Fracking Process leads to chemical contamination of water bodies leading to disease and sickness among local animals and humans.Shale Gas Companies and Local Officials have also been accused of conniving to break regulations and laws regarding water usage.Besides Pennsylvania risks becoming a guinea pig for Big Oil and Gas as it turns the whole state into one giant Shale Gas Well.Note the technology is new and there are other potentials risks and dangers which have not been adequately addressed.The order banning further development of shale gas development on state’s forested lands is a good one but won’t hinder the industry there.Note they can continue their activities on private lands and 25% of the forests are anyway under the thumb of the Gas Companies.Pennsylvania is important to the environment as the progress of Shale Gas will be emulated by countries like India who want to make Environment Safety an integral part of the Shale Gas Policy.

Governor Bans New Gas Wells on State Land – NYTimes

Gov. Edward G. Rendell of Pennsylvania signed an executive order on Tuesday effectively banning further natural gas development on state forest lands.Roughly 660,000 of the state’s 2.2 million acres of public forest land have been leased, according to department data. The Marcellus Shale Coalition, an industry group, estimates that there are about 160 Marcellus Shale wells on state lands and about 2,300 on private lands in Pennsylvania.

Saudi Arabia has been one of the biggest opponents of Green and Clean Energy amongst the major countries.In fact Saudi Arabia led other Middle Eastern Nations in blocking a poor island nations request for a climate change study.OPEC of which Saudi Arabia is a leading member has recently railed against the Clean Stimulus being given by Governments post the Lehman crisis.The stated position of the country with the largest oil reserves is that it should be compensated by the world as part of the Climate Change Mitigation efforts.The reason being that Oil Demand decreases  because Green Energy is encouraged leading to losses for the Saudi Oil Machine.It is quite absurd that one of the richest nations on earth needs compensation  but that is what Saudis want.They have no compunction in spending $60 Billion in  Arms from the USA.

Renewables to contribute to Saudi power mix – Reuters

Saudi Arabia expects renewable sources to contribute to its energy mix as its need for power triples over the next two decades, but the exact percentage will hinge on oil prices, a government official said on Wednesday.

The top oil exporter has said it hopes to draw 10 percent of its power output from mostly solar energy and other renewable sources by 2020.

“I think any number can be achieved, provided there is enough support for it from studies, analysis,” Abdullah al-Shehri, governor of the Saudi Electricity and Co-Generation Regulatory Authority (ECRA) told the Reuters Middle East Summit in Riyadh.

Saudi Arabia does not give a hoot to Climate Change

Now this Renewable Energy Antagonist is thinking of using 10% of its Energy Demand by 2030 from Green Sources.Currently Saudi Arabia uses Oil and Gas for all of its 50 GW of Electricity.This is the highest Oil Usage ratios for Energy Demand amongst major countries with Oil being one of the most expensive electricity generating sources.However for Saudi Arabia which is literally swimming in Oil,using 10% of its mammoth 8 million bpd production is a small expense especially considering the low cost of extracting oil there.The country is still not decided on using Green Energy and will only use it if Oil Prices become high enough.The Saudis are thinking of building nuclear plants like UAE and Kuwait but nothing is final yet.Note there is no concern for Global Warming or Climate Change.Like Kuwait ,Saudi Arabia want to use renewables so that they can export the much more expensive oil in the future.Using only 10% by 2020 even when poor countries are thinking on enacting 10-15% by 2020 while EU has a target of 20% by 2020 and China 15%.You cannot expect much from Saudis either considering that they are ruled by an absolute monarchy with little human rights and even less freedom.The Royal Family of Sauds consider the kingdom as a private estate even if it will use 120 GW of Electricity by 2032.The less said about the rulers the better with one of the hundred of princes being recently convicted by UK for sexually abusing and killing a servant in a 5 star London Hotel.

US announces $60bn arms deal with Saudi Arabia – TOI

Billed as America’s largest- ever arms deal with a foreign country, US today announced its plans to sell up to USD 60 billion worth of aircraft, helicopters and other weapons to Saudi Arabia apparently aimed at sending a strong message to Iran.
The Obama Administration notified the US Congress of its plans to sell 84 F-15 aircraft, 70 upgrades of existing Saudi F-15s to a more advanced configuration, 70 AH-64D Apache Longbow helicopters, 72 UH-60 Blackhawk helicopters, 36 AH-6i light attack helicopters, and 12 MD-530F light training helicopters.

Abu Dhabi has got the largest sovereign wealth fund in the world with asset of over $600 Billion.The small emirate which is a part of the larger United Arab Emirates is one of the richest countries in the world due to massive Oil Reserves.The country had made ambitious Renewable Energy Plans setting up a Fund/Company dedicated to its Green Ambitions called Masdar.The Company has faced a number of reverses as it tried a number of things all at once in a new industry.Its “Jack of All Trades” Strategy has proven to be a failure as it lost/fired a number of top executives.Its Solar Plans have also come up a cropper as Thin Film Technology has faced a lot of reverses in recent times.The Company has tried to change tactics by concentrating now on Solar Thermal Technology partnering with Abengoa and Total in building a CSP plant near Abu Dhabi.With its Renewable Energy Arm facing a number of reverses,its plan for a futuristic,zero carbon Green Masdar City has also been scaled down.

The new Masdar City which was supposed to be totally powered from Green Energy Sources will now also use Fossil Fuel Sources.Reality has proved to be a harsh mistress for Abu Dhabi despite its awesomely deep pockets.The City which received its first residents recently has also delayed the completion of the construction plans .The $22 Billion Project which was supposed to have a radically new clean transportation system consisting of electric driven pods has also been shelved.Goes to show you that Green Technology can only be implemented in incremental steps instead of big bang futuristic plans where technology is still ill-developed.

Masdar Revises Zero-Carbon Plan, Delays Phase One – Bloomberg

Masdar, the Abu Dhabi government- backed renewable energy company, abandoned plans for Masdar City to be carbon-neutral from the start and delayed the city’s first phase by two years to 2015.The project will be completed between 2020 and 2025, the company said in an e-mailed statement today.

“While still aiming to eventually be powered 100 percent by renewable energy, Masdar City will no longer rely solely on on-site clean energy sources,” the company said. “The purchase of renewable energy from off-site locations may also be utilized as energy demands increase over the project’s lifetime.”

The Government of India has formed a high powered panel to look into replacing the usage of diesel powered gensets by Renewable Energy in Telecom Towers.India has  around 300,000 Telecom Towers most of which are powered by expensive  diesel generators.The reason is that a lot of the telecom towers are situated in far flung areas where the grid does not exist.Also the power supply in India is erratic and not reliable with 10 hour electricity blackouts not an infrequent occurrence.In these cases a backup supply of electricity supply is badly needed.Diesel Generators are the most popular form with Diesel heavily subsidized by the government in comparison to normal petroleum.Also Diesel Generators are widely available without huge capital costs.

However these Diesel Generators are much more expensive than normal electricity and cause a huge amount of pollution.The government estimates a $1.5 billion annual spend on fossil fuel by telecom towers with 5 million tons of Carbon Dioxide Emission.Replacing these polluting forms of expensive dirty energy with Green Energy is a great forward looking proactive step.Note some of the telecom towers are already using some form of Renewable Energy.Making it mandatory for all towers to use Green Energy would give the much needed policy boost to Green Telecom in India.

Renewable Energy For Telecom Towers: Panel Formed – RTT

The Union Government has set up a five-member committee, headed by Ajay Bhattacharya of the Universal Service Obligation Fund (USOF) of the Telecom Ministry, to explore ways to promote renewable energy for powering telecom towers, say media reports. Every year, the country’s three-lakh telecom towers utilize fuel worth over Rs.6,400 crore. The government is planning to use renewable energy, particularly solar energy, to reduce the cost of fuel and to dispense with hazardous carbon emissions. The committee will submit its report in three months.