In India, coal is abundant and still
considered to be the cheapest fuel to
generate power. However, the wide
use of coal raises concerns over the
environmental impact. In particular,
the burning of coal pollutes the air
and contributes to greenhouse gas
emissions; while the accumulation of
ash at power stations makes land inappropriate
for other uses and endangers
both ground and surface water. Also,
when more coal is burned, more must
be produced, which in turn degrades
more land, displaces population,
destroys forest cover, depletes more
water resources, and causes more
water pollution.
The Government of India recognized
the need for an independent assessment
of the environmental consequences
of coal burning in power
plants and asked the World Bank and
ESMAP to look into the issue, in
consultation with all affected groups
and people.
ESMAP's Work
In 1996, with funding from the
Department for International
Development (DFID) of the United
Kingdom, ESMAP, launched a far
reaching examination of environmental
issues in the power sector. The
objective was to develop a decisionmaking
tool, which would enable
government officials and institutions
in India to evaluate alternative
options for power development. The
activity ended in June 1998, and the
results are now being disseminated to
several states.
The work started with an initial questionnaire
and a series of seminars and
workshops in Delhi, to encourage the
participation and interest of a wide
audience. One workshop, for Indian
and international technicians, discussed
the modeling tools available to
help in the analysis. Another involved
non-governmental organizations
(NGOs) who were invited to voice
their views and to nominate their representatives
to attend subsequent
workshops for the duration of the
study. These preliminary workshops
were followed by a major Inception
Seminar in July, 1996, attended by
key decisionmakers from the Indian
ministries and from the industry.
The decision-making tool was developed
through two state-level case studies,
supplemented by a set of special
studies. The case studies were done in
the states of Andhra Pradesh (AP) and
Bihar. The special studies provided
generic data and covered: demand-side
management; interfuel substitution
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