Headquarters
The Energy and Resources Institute (TERI)
Darbari Seth Block, Core 6C,
India Habitat Centre, Lodhi Road,
New Delhi - 110 003, India
With many inconsistencies coming to the fore post-IUC (interconnection user charges) regulation, the Telecom Regulatory Authority of India has taken up its review. The IUC regulation and the tariff order issued by TRAI in January came into force from May 1; the tariff hike proposed by TRAI was rolled back under political pressure. As for the IUC, until the review process is complete, it will continue to remain in force in its existing form.
The idea of ecotourism being one of the ways in which a variety of ecological, economic and social ills can be resolved has been around for some time now. Unfortunately though, the desire to see quick and/or easy solutions to these problems all too often results in both the concept and the practice of ecotourism being used and abused.
Today is World Environment Day. For those of us living in India, United Nations Secretary General Kofi Annan's message, on the occasion, holds special significance. He's marked out the theme of this year's World Environment Day as "Water: Two billion people are dying for it".
The Doha round of trade negotiations, launched in 2001, is in some difficulty. Whether the difficulties prove fatal depends on whether the developed world continues with the unnecessary rigidity it has shown so far on issues crucial to the developing world.
Regulator bashing appears to be everyone's favourite pass time these days. A power cut and one hears about - for the next few weeks, at least - the "bad job" being done by the electricity regulator. Any increase in telephone tariffs, and everybody is out to run down the telecom regulator. There is no denying that it is necessary to keep the regulators on their toes, but are anti-regulator crusades the only way? Is it fair to judge a regulator on the basis of one action? Does it (the one action) make a regulator anti-consumer? Does it rewind the wheel of reforms, undoing all earlier successes?
The symbiotic link between reforms in the power and coal sectors needs greater attention. The policy framework in the coal sector has a direct bearing on the performance of the power sector. Sixty per cent(62,631 MW) of power generating capacity is coal based and the coal industry is virtually operated by a monopoly. Of the total domestic coal production of 328 million tonnes (MT) in 2001-02, about 74% was consumed by power utilities alone. In 2001, the Indian railways, again a monopoly, carried about 53% of the coal, accounting for 48% of all revenue traffic. All these have a bearing on the power tariff.
Inefficient energy consumption patterns by most government buildings result in a financial loss of about Rs 150 crore (Rs 1.50 billion) a year.
Immediately after President George W.Bush's ultimatum to Iraq, oil prices dropped significantly to below $30 per barrel. Several reasons account for this reduction, the first being the removal of uncertainty over war in Iraq. Secondly, the market factored in the likelihood of a short war, which would not cause significant dislocation in the global oil market. Further, the International Energy Agency's (IEA) coordinated pooling of oil reserves to counter any fluctuations in the oil market. But a prolonged conflict in Iraq could upset the balance seriously. In that case the implications for India could be even more serious than those for the developed countries.
After considerable discussion and debate, the government of India dismantled the Administrative Pricing Mechanism last year. The intention behind the dismantling of the APM was to create a free and competitive market for petroleum products, and to ensure the viability of the oil companies which would be freed from price control by the government.
Unlike previous Budgets, the finance minister's speech stressed the need for leveraging public funds to encourage private participation in infrastructure sectors, and proposed a "viability gap funding" (VGF) mechanism to attract Rs 60,000 crore in roads, rail, airports and sea ports.