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 Infrastructural Challenges



Energy is an important input for most of the production processes and consumption activities. It plays a crucial role in the economic development. Economic growth and demand for energy are positive co-related. A study shows a 3 percent rise in industrial production in the world’s accompanied by a 2 percent increase in energy consumption. A similar relation is also observed in India. India is both a major energy producer and consumer. India is world’s 6th largest energy producer and 5th largest energy consumer accounting for about 4% of the world’s total energy consumption.


The population living in rural areas mostly depends upon non-commercial, traditional sources of energy such as firewood, dung cakes and agricultural wastes. At present, nearly 27 percent of the energy consumed is obtained from non-commercial sources or traditional sources. The rest is commercial energy and is obtained from oil and gas, coal, hydro-electricity and nuclear power. Production of nuclear power has started, but is not much.


There is a distinction between primary energy resources and final energy resources. When coal is consumed for generating electricity and electricity is consumed by industry, we call coal the primary energy resource and electricity as the final one. Coal, petroleum products and natural gas are both primary resources and final resources as they are consumed directly as well as indirectly, while electricity is, by and large, the only final energy resource.


Major users of the commercial energy are industry (37 percent), domestic (25 percent), agriculture, (20 percent), and commercial establishments (10 percent).

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