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India
>> Regional Overview >> India Overview ACTIVITY DATA SHEET
PROGRAM: India
TITLE AND NUMBER: Increased Environmental Protection in Energy, Industry, and Cities, 386-004
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $8,500,000 DA (including $8,000,000 in FY 2000 carryover and $500,000 NOA)
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $10,000,000 DA; $3,000,000 ESF
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2007Summary: This objective responds to the global issue of environmental protection under USAID's Strategic Plan. The growing demand for power, fueled largely by high-ash coal, makes India a major and increasingly significant global polluter. India is the second-fastest growing producer of greenhouse gases (GHG) in the world. Working through the India bilateral program and the SARI/Energy initiative, this objective addresses regulatory issues, designs technology solutions and engineers market responses aimed at: (a) fostering energy efficiency to mitigate global and local impacts of energy use, and (b) improving environmental conditions in urban areas. Subsequent to the reciprocal visits of the President of the United States and the Indian Prime Minister in 2000, activities have intensified in: (1) commercial development of clean energy technologies; (2) provision of advanced power sector training and, (3) analysis of the relationship between power distribution and water management. With the promise of private sector participation in the power sector unfulfilled and a possible decline in investor interest, power distribution sector reforms are critical to restoring sound financial performance of the power sector. The ultimate beneficiaries are private and public power distribution and generation utilities; industrial and commercial end-users; local governments, municipalities, and low income urban consumers of drinking water and sanitation services; and rural consumers of electricity and ground water.
The rapid growth in India's urban population has put tremendous strain on urban environmental infrastructure, including water supply, sanitation, and sewerage systems. Close to 40% of the urban population lives in slums and squatter settlements with poor or no access to these basic services, causing severe health problems to the most vulnerable group of the population. This objective provides commercially viable water and sanitation services for the urban poor.
Key Results: Achievement of the following three key results by 2002 will indicate the success of this objective: (1) increased avoidance of carbon dioxide emissions; (2) increased number of firms that meet international environmental quality standards in selected industrial sectors, and (3) increased number of local governments/authorities with urban environmental management tools available to them.
Performance and Prospects: These activities and funding levels are illustrative and subject to change. In FY 2001, USAID will continue to fund three on-going bilateral activities: (1) the Greenhouse Gas Pollution Prevention Project (GEP), which aims to increase efficiency in electricity generation and promote non-conventional energy sources ($3,800,000 in DA); (2) Energy Conservation and Commercialization (ECO), which promotes widespread commercialization of energy efficient technologies and services ($2,500,000 in DA); and (3) Financial Institutions Reform and Expansion (FIRE), which works with local and state governments to develop, package, and implement urban environmental infrastructure projects that improve access to basic services by the poorest and the most vulnerable populations ($1,495,000 in DA). In addition, FY 2001 DA funding of $700,000 is planned to access technical assistance for renewable energy activities and crosscutting energy-water themes.
USAID's energy portfolio is designed to reduce GHG emissions by increasing both supply- and demand-side energy efficiency and overall power sector efficiency through improved regulatory institutions. In the energy sector, 3.4 million tons of carbon dioxide have been avoided as of March 2000 through increased thermal power station conversion efficiencies, improved coal preparation, renewable power generation and end-use efficiency, including demand side management (DSM). Subsequent to the March 2000 Joint Statement on Cooperation in Energy and Environment, two Protocols of Intent (POI) on Clean Energy and Global Climate Change were signed by USAID, U.S. Department of Energy, and the Government of India (GOI) during the U.S. visit of the Indian Prime Minister. The first POI lays the framework for bringing state-of-art coal conversion technology to India through a joint Indo-US feasibility study for an Integrated Coal Gasification Combined Cycle power plant. The second POI targets power sector training for India's electricity sector. On the supply side, two regional Clean Energy centers, patterned after the successful USAID-supported Center for Power Efficiency and Environmental Protection have been replicated in Uttar Pradesh (UP) and Bihar. On the demand side, USAID is providing parallel co-financing for DSM and energy efficiency activities to leverage the $180 million World Bank-assisted Rajasthan State Power Sector Project reforms. USAID is helping the Jaipur Distribution Company establish a DSM cell, develop model contracts among end-users and Energy Service Companies, develop consumer awareness and information programs, and design regulatory and incentive mechanisms. USAID has constituted a Global Climate Change Research Forum aimed at partnering Indian and U.S. scientists and researchers. USAID has helped to establish a central and six state electricity regulatory commissions with an accelerated focus on strengthening commissions at the center and in UP and Andhra Pradesh. As of FY 2000, more than 1,000 power sector personnel had been trained. USAID provided a $3.5 million credit guarantee at a cost of only $202,000 to finance a 12.5 megawatt, biomass-based fuel (mustard husk briquettes) private sector power project. This successful guarantee will leverage $7 million in private sector borrowings and mitigate GHG emissions in the energy sector.
USAID assistance has strengthened incentives for the following: adoption of energy efficient technologies; certified environment management systems; and the enhancement of capacity of Indian industry to incorporate such technologies and practices into their operations. Energy intensive sectors with high GHG emitting potential such as textiles, paper, automobiles and steel were targeted for assistance in the first project phase. As of December 2000, 17 firms have received ISO 14001 certification, and three are on track for certification by March 2001. These certified organizations, based on continual cycle of planning, implementing, reviewing and improving the actions are meeting their environmental obligations.
In the urban sector, with USAID's technical assistance, the City of Kohlapur has awarded a Build-Operate-Transfer contract for the city's solid waste management to M/s Zoom Developers and Larsen Engineering (U.S.), which demonstrates private sector participation in city infrastructure service delivery. Two more cities in Maharashtra have completed their Environmental Status Reports which enable them to identify their environmental management needs, prepare investment plans to meet them, and then report back to the city legislative council about actions taken. Under the Sustainable Cities Initiative, USAID is supporting the municipalities of Pune and Indore to institutionalize energy savings in their water supply and sewerage disposal systems.
Possible Adjustments to Plans: During FY 2001, USAID will review this activity and prepare a new strategy in FY 2002.
Other Donor Programs: In addition to the GOI, USAID works closely with the World Bank, the United Kingdom, and the Asian Development Bank on power sector reform and restructuring and urban environmental infrastructure development.
Principal Contractors, Grantees, or Agencies: 1) GEP: National Energy Technology Laboratory, U.S. DOE; Louis Berger International; Industrial Development Bank of India Ltd.; ICICI Ltd.; and National Thermal Power Corporation. 2) Trade in Environmental Services and Technologies: ICICI Limited; TetraTech International; Confederation of Indian Industry; Federation of Indian Chambers of Commerce and Industry; and Society of Indian Automobiles Manufacturers. 3) Energy Management, Consultation and Training: Power Finance Corporation; Industrial Development Bank of India; Institute of International Education; and United States Energy Association. 4) ECO: Nexant; PA Consulting Group; ICICI Limited; and Ministry of Power. 5) FIRE: The Communities Group Inc. and National Institute of Urban Affairs.
FY 2002 Performance Table
India: 386-004
Performance Measures:
Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan) Indicator 1: Increased number of firms that meet international environmental quality standards in selected industrial sectors. NA NA 7 17* 15 20 25 Indicator 2: Local government/authorities with urban environmental management tools available to them. 4 7 9 11 10 12 14 Indicator 3: Carbon dioxide equivalents of greenhouse gas (GHG) emissions avoided 0.02 1.09 2.16 3.24 3.24 4.19 5.28 Indicator Information:
Indicator Level (S) or (IR) Unit of Measure Source Indicator Description Indicator 1: IR Number of firms (cumulative) Reports of Industry Associations, Bureau of Indian Standards (BIS), Quality Council of India (QCI) International environmental quality standard is defined as ISO 14001 certification. Number of firms which, with assistance from the Clean Technology Initiative (CTI), obtained ISO 14001 certification in the following sectors: textiles, pulp & paper, pharmaceutical, automobiles, thermal power, steel and cement. * Reporting period for this data is as of December 2000 Indicator 2: IR Number of local governments/authorities which have one or more of the urban environmental management tools (cumulative) Surveys, annual evaluation, sector assessment by municipalities, project working reports, study reports, HUDCO, IFLS, NIUA, NGOs & USAID 1) Urban environmental management tools are: Environmental status reports/maps/workbooks, comparative environmental risk assessments, environmental management action plans, city corporate plans, and city infrastructure priorities studies; 2) "Authorities" include state and city level water supply and sewerage boards; 3) These urban environmental management tools have been developed with active collaboration of the concerned local government/authorities. Indicator 3: IR In Million Tons (cumulative) Center for Monitoring Indian Economy (CMIE) report, Project Reports, NTPC reports. Emissions of carbon dioxide equivalents avoided are calculated by converting MW hour of coal-fired energy saved or avoided through SO4 activities (such as biomass cogeneration, enhanced energy efficiencies - in both supply side and demand side activities - and clean coal technologies). Data includes information on projects which receive USAID support directly. U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 80,490 DA 52,575 DA 27,915 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 11,800 DA 10,905 DA 0 CSD 0 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 92,290 DA 63,480 DA 28,810 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 8,000 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 500 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 8,500 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 10,000 DA 36,215 DA 147,005 DA 0 CSD 0 CSD 0 CSD 3,000 ESF 22,000 ESF 25,000 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
