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What happened
In FY2024, Chhattisgarh's energy sector received substantial government support totaling over INR 16,672 crore, but a report indicates that fossil fuel subsidies were four times greater than those for renewable energy sources. Specifically, INR 12,648 crore was allocated as subsidies, with coal receiving the largest share at 26%, while renewable energy only accounted for 8%. The state's energy-related revenues reached INR 22,532 crore, with 80% derived from fossil fuels, making it vulnerable to shifts in energy policy and market dynamics. Experts emphasize the need for Chhattisgarh to diversify its energy resources and revenue streams to mitigate risks and align with India's clean energy goals. Recommendations include better targeting of electricity subsidies and investing in renewable technologies to ensure sustainable economic growth.
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Key insights
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1
High fossil fuel dependency
Chhattisgarh relies on fossil fuels for 80% of its energy revenues.
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2
Need for diversification
Experts urge diversification of energy resources to secure long-term growth.
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3
Alignment with clean energy goals
The state must align its support with national clean energy objectives.
Takeaways
Chhattisgarh's heavy investment in fossil fuels poses risks to its economic stability and clean energy ambitions. A strategic shift towards renewable energy is essential for sustainable growth.