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In Pursuit of a Light Bulb and a Smokeless Kitchen

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In Pursuit of a Light Bulb and a Smokeless Kitchen IN PURSUIT OF A LIGHT BULB AND A SMOKELESS KITCHEN LONGITUDINAL ANALYSIS OF THE ROLE OF ENERGY SECTOR POLICIES TO ALLEVIATE RURAL ENERGY POVERTY IN INDIA DISSERTATION to obtain the degree of doctor at the University of Twente, on the authority of the rector magnificus, prof.dr. H. Brinksma, on account of the decision of the graduation committee, to be publicly defended on Wednesday 19th of December 2012 at 16.45 hours by Shirish Sinha Born on the 27th of June 1973, in Guwahati, Assam, India This thesis has been approved by: Promoter: prof. dr. H. Th. A. Bressers Assistant Promoter: dr. Joy S Clancy Committee Chair prof.dr. R.A. Wessel University of Twente Secretary prof.dr. R.A. Wessel University of Twente Promoter prof.dr. J.Th.A. Bressers University of Twente Assistant Promoter dr. J.S. Clancy University of Twente Member prof.dr. N.G. Schulte Nordholt University of Twente Member dr. M.J. Arentsen University of Twente Member prof.dr.ir. T.H. van der Meer University of Twente Member prof.dr. M.P. van Dijk Erasmus University, Rotterdam Member dr. Konrad Blum Carl von Ossietzky Universität Oldenburg, Germany Member dr. Venkata Ramana Putti The World Bank The doctoral research was supported by: the Joint Japan World Bank Graduate Fellowship (JJWBGSP) of the World Bank Institute and by the WOTRO Developing Country Fellowship provided by the Netherlands Foundation for the Advancement of Tropical Research (WOTRO) – Netherlands Organisation for Scientific Research (NWO). © Sinha, Shirish. 2012 In Pursuit of a Light Bulb and a Smokeless Kitchen No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the author. ISBN: 978 90 365 3482 6 UNIVERSITY OF TWENTE. School of Management and Governance Twente Centre for Studies in Technology and Sustainable Development (CSTM) Enschede, The Netherlands E-mail (for correspondence): [email protected] IN PURSUIT OF A LIGHT BULB AND A SMOKELESS KITCHEN LONGITUDINAL ANALYSIS OF THE ROLE OF ENERGY SECTOR POLICIES TO ALLEVIATE RURAL ENERGY POVERTY IN INDIA Dedicated to My Father Vijoy Narain Sinha Table of contents List of Tables ix List of Maps and Figures x List of Boxes xi Abbreviations, Indian Administrative/Hindi terms, Units of Measurements xii Acknowledgements xvii Prologue xxi 1. Introduction 1 1.1 Context 1 1.2 Problem Statement 5 1.3 Structure of the Dissertation 10 2. Applied Concepts on Energy-Development and Policy Reforms 13 2.1 Introduction 13 2.2 The Broader Context: Energy and Development 14 2.2.1 Energy and Development 15 2.2.2 Energy Poverty 17 2.2.3 Energy Poverty and Policy Reforms 27 2.3 Institutional Aspects of Public Sector Reforms 28 2.3.1 Economic Efficiency as a Motive for Reforms 29 2.3.2 Government Delivery of Energy Carriers 33 2.3.3 Policy Instruments: Entitlements and Subsidies 35 2.3.4 Government versus Market: Arguments for Reforming the Energy Sector 38 2.4 Characteristics, Capabilities and Culture 40 2.5 Analytical Framework 43 2.5.1 Delivery Pathways 43 2.5.2 Enabling Factors 44 2.5.3 Contextual Influences 46 2.5.4 Main Research Questions 48 3. Research Methodology 51 3.1 Introduction 51 3.2 Case Study Regions 52 3.2.1 Selection of the States: West Bengal, Chhattisgarh and Orissa 53 3.2.2 Selected Case Study Regions: Gosaba, Bastar and Kalahandi Blocks 56 3.2.3 Village Selection and Field Surveys 61 3.2.4 Sampling Households 64 3.3 Research Techniques 66 3.3.1 Research Techniques for Village Clusters 66 vii 3.3.2 Research Techniques for Policy Analysis 68 3.4 Validity and Reliability 70 4. Rural Energy Policy in India: The Meek Shall Inherit 73 4.1 Introduction 73 4.2 Organisational Setting for Rural Energy 75 4.2.1 Constitutional Provisions 75 4.2.2 Central and State Organisations 77 4.2.3 Local Organisations 83 4.2.4 Implications of the Organisational Setting 84 4.3 Political Economy of Rural Energy Policy: Transition from State Monopoly to Inclusive Reforms 85 4.3.1 Phase I: Centralised Planning (1950–69) 86 4.3.2 Phase II: Political Populism (1969–91) 87 4.3.3 Phase III: Reform (1991–2004) 90 4.3.4 Phase IV: Inclusive Reform (2004–2010) 93 4.4 Policies and Programmes for Rural Energy Access 96 4.4.1 Phases I and II (1950–1991) 96 4.4.2 Phases III and IV (1991–2010) 102 4.5 Conclusions: Answer to Main Research Question 1 116 5. Understanding Energy Access: Gosaba, Bastar and Kalahandi 127 5.1 Introduction 127 5.2 Gosaba Case Study 129 5.2.1 Delivery Pathways – Before and After 2004 133 5.2.2 Access to Modern Energy Carriers: Who Has Access? 143 5.2.3 Contextual Influences Affecting Energy Access 148 5.2.4 Policy Design in relation to Implementation 157 5.3 Bastar Case Study 160 5.3.1 Energy Availability in Bastar: Delivery Pathways 162 5.3.2 Access to Modern Energy Carriers: Who Has Access? 172 5.3.3 Contextual Influences that Affect Energy Access 175 5.3.4 Policy Design in relation to Implementation 182 5.4 Kalahandi Case Study 184 5.4.1 Energy Availability in Kalahandi: Delivery Pathways 188 5.4.2 Access to Modern Energy Carriers: Who Has Access? 198 5.4.3 Contextual Influences that Affect Energy Access 201 5.4.4 Policy Design in relation to Implementation 206 5.5 Conclusions: Answering Main Research Question 2 208 6. Conclusions and Recommendations: Will Rural India Shine? 227 6.1 Introduction 227 6.2 Changes Required in Enabling Factors: Answer to Main Research Question 3 230 viii 6.2.1 Changes Required in Organisations 231 6.2.2 Changes Required in Policies and Policy Instruments 233 6.3 Policy Recommendations 236 6.3.1 Enabling Regulatory Framework 238 6.3.2 Local Organisations as Intermediaries 240 6.3.3 Making Subsidies and Entitlements Work Better - Need for Targeting 243 6.4 Contributions of this dissertation 245 6.4.1 Contribution to Academic Knowledge 245 6.4.2 Contribution to India’s Energy Policy Discussion 247 6.4.3 Suggested Areas for Future Research in India 248 6.5 Concluding Remarks 249 References 251 Summary 269 Samenvatting 277 Annex I: Profile of Case Study Regions 287 Annex II: Rural Energy Scenario in India 297 Annex III: Survey Instruments 299 Annex IV: Rural Electrification Programmes in India (1950-2010) 306 About the Author 309 List of Tables Table 3.1: Access to Modern Energy Carriers and Rural Poverty Rate 56 Table 3.2: Access to Energy Carriers for Cooking and Lighting 59 Table 3.3: Research Techniques 69 Table 4.1: Electricity Subsidies 1996 -2002 92 Table 4.2: Plan Budget for Rural Electrification in India (1951–90) 98 Table 4.3: Plan Budget for Rural Electrification in India (1992–2012) 106 Table 4.4a: Central Government Subsidies on PDS Kerosene oil and LPG 109 Table 4.4b: Central Government Subsidies on PDS Kerosene oil and LPG 109 Table 5.1: Delivery Pathways and Policy Instruments (2001–02 and 2008-09) 133 Table 5.2: Phases and Functions of Electricity Distribution 135 Table 5.3: Phases and Functions in LPG and Kerosene oil distribution 139 Table 5.4: Energy Carriers used in Gosaba 144 Table 5.5: Low-Capacity End-Users in Gosaba Island 145 Table 5.6: Mapping Energy Access by Economic Status and Occupation 146 ix Table 5.7: Energy Access and Women in Income/Non-Income Earning Activities 148 Table 5.8: Delivery Pathway and Policy Instruments (2001–02 and 2008–09) 163 Table 5.9: Phases and Functions of Electricity Distribution 165 Table 5.10: Phases and Functions of LPG and Kerosene Distribution 169 Table 5.11: Energy status in case-study villages of Bastar 173 Table 5.12: Low-Capacity End-users in Bastar 173 Table 5.13: Mapping Energy Access to Economic Status and Occupation 174 Table 5.14: Energy Access and Women in Income/Non-income Earning Activities 175 Table 5.15: Delivery Pathway and Policy Instruments (2001–02 and 2008–09) 188 Table 5.16: Phases and Functions of Electricity distribution 190 Table 5.17: Problems Related to Grid Electricity Privatisation 192 Table 5.18: Phases and Functions of LPG and Kerosene oil distribution 194 Table 5.19: Energy status in village clusters of Kalahandi 198 Table 5.20: Low-Capacity End-Users in Kalahandi 199 Table 5.21: Mapping Energy Access by Economic Status and Occupation 200 Table 5.22: Energy Access and Women in Income/Non-income Earning Activities 200 Table 5.23: Delivery Pathways and Enabling Factors – Comparative Analysis 212 Table 5.24: Factors influencing Energy Access - Comparative Analysis 218 Table 5.25: Contextual Influences affecting Access - Comparative Analysis 226 List of Maps and Figures Figure 1.1: Structure of the thesis 12 Figure 2.1: Energy Poverty – the vicious circle 22 Figure 2.2: Analytical Framework 44 Figure 3.1: Status of rural electrification 54 Map 3.1: Location of Case Study Regions in India 58 Figure 4.1: Organisational Setting for Rural Energy in India (2010) 78 Figure 4.2: India’s Energy Development Policy – 1950 to 2010 89 Figure 4.3: Rural Electrification Programme in India (1950-1990) 97 Figure 4.4: Petroleum Energy Programme in India (1950-1990) 100 Figure 4.5: Rural Electrification Programme in India (1990-2010) 106 Figure 4.6: Subsidy for Rural Electrification under RGGVY (2004/05 -2009/10) 108 Figure 4.7: Petroleum Sector Reforms and Rural Access (1990-2010) 111 Figure 4.8: Politics of petroleum pricing 113 Map 5.1: Map of Gosaba case-study villages 131 Figure 5.1: The interplay between Contextual Influences – Gosaba 149 Map 5.2: Map of Bastar Case Study Villages 164 x Figure 5.2: The Interplay between Contextual Influences – Bastar 176 Map 5.3: Map of Kalahandi Case-Study
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