Energy A Basic Infrstructure


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My first paper presentation at A.V.V.M PUSHPAM COLLGE,POONDI(TANJORE).

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Energy A Basic Infrstructure

  1. 1. Energy a Basic Infrastructure in Economic Development of Tamil Nadu By Mahammad Rafee M.Phil
  2. 2. Prosperity of a country depends directly upon the development of agriculture and industry . <ul><li>Agriculture production however requires irrigation power, credit and transport facilities etc.And Industrial production also requires machinery and equipment, skilled man power, management, energy, banking and insurance facilities, transport services which include railways, roads and shipping, communication facilities etc. </li></ul>
  3. 3. Infrastructure facilities often referred to as economic and social overheads consists of <ul><li>Irrigation, including flood control and commanded area development. </li></ul><ul><li>Energy: coal, electricity, oil and non-conventional sources. </li></ul><ul><li>Transport: Railways, Roads, Shipping and civil aviation. </li></ul><ul><li>Communications: Posts and telegraph, telephones, telecommunications etc. </li></ul><ul><li>Banking, finance and insurance. </li></ul><ul><li>Science and technology. </li></ul><ul><li>Social overheads: health and hygiene and education. </li></ul>
  4. 4. Energy: - Most important single factor which can act as a constraint on economic growth of a country is availability of energy <ul><li>There is a direct correlation between degree of economic growth, the size of percapita income and per capital consumption of energy. </li></ul><ul><li>Energy is an essential input of all productive economic activity. </li></ul><ul><li>The process of economic development inevitably demands increasing higher levels of energy consumption. </li></ul><ul><li>Percapita consumption of energy in India was 479 kilo grams oil equilant as compared to 691 in Indonesia, 656 in Egypt. 907 in china, 1051 in Brazil and 1319 in Thailand. </li></ul>
  5. 5. Sources of Energy <ul><li>Commercial energy consists of coal, petroleum and electricity commercial energy is that which command price and user have to pay for these. Commercial energy accounts for 60% of all energy consumption in TamilNadu. </li></ul><ul><li>Non-commercial energy sources consists of firewood, vegetables waste and dried dung. These sources are called non-commercial. As they are supposed tobe free and command no price. Now firewood and dried dung have started commanding price in urban areas and to some extent in rural areas. Nearly 40% of the Household depend on traditional sources of energy for meeting their cooking and heating needs in TamilNadu. </li></ul>
  6. 6. Sources of commercial Energy in Tamil Nadu <ul><li>Coal and lignite </li></ul><ul><li>Oil and gas </li></ul><ul><li>Electric power </li></ul>
  7. 7. Non-Commercial Energy resources in Tamil Nadu <ul><li>Fuel wood </li></ul><ul><li>Agricultural wastes </li></ul>
  8. 8. Energy Crisis <ul><li>Industrial development in the 18th and 19th century was based on coal as the leading sources of energy. Industrial development every where in the 20th century was based on low cost oil. India imported Arab oil flowed cheaply. In 1973 (OPEC) Organization of petroleum exporting countries hiked the oil price for first time. </li></ul><ul><li>Since then the price of petroleum crude was hiked up from $2.1 per barrel in 1973 to $27.3 per barrel in 1980, which led to the value of oil imports rose sharply from 1,110 crores in 1973-74 to over Rs 5620 crores in 1982-83 and to 94,520 crores in 2003-04 recently. On January 26th, 2008 oil price per barrel touched to $100 mark. </li></ul>
  9. 9. Energy crisis in India <ul><li>The energy crisis of the seventies and eighties was basically an oil crisis, it was a global problem. </li></ul><ul><li>India’s energy problem is not one of demand –supply imbalance in oil only. Demand –supply imbalances is widening rapidly in all commercial fuels, demand for commercial energy is increasing tremendously with higher intensity of economic growth. </li></ul><ul><li>Demand for commercial energy could continue to rise every year while demand for fuel is rising, the supply of all commercial fuels has also been rising but not adequately. </li></ul><ul><li>Coal industry which was expected to meet the growing energy crisis in India by stepping up coal production substantially has been faring badly in recent years. </li></ul><ul><li>Oil shortage affects adversely the transport sector which accounts for 56% of total oil consumption in TamilNadu. </li></ul><ul><li>Power shortage hits seriously the industrial and agricultural production and service sector too. </li></ul>
  10. 10. Measures to tackle energy crisis in Tamil Nadu <ul><li>Stepping up of oil production </li></ul><ul><li>Control over the consumption of POL </li></ul><ul><li>Conservation of Energy </li></ul>
  11. 11. Conclusion <ul><li>State has to take steps in increasing the capacity of power generation </li></ul><ul><li>Have to expand the horizons in the production of Bio-Diesel and Nuclear power to meet the future demand for Economic development. </li></ul>
  12. 12. THANKYOU <ul><li>By Mahammad Rafee M.Phil </li></ul><ul><li>P.G & Research Department of Economics </li></ul><ul><li>Jamal Mohamed College </li></ul><ul><li>Trichy </li></ul>