Clean air: One of the biggest challenges for PM Modi in second term

Economy News

One of the biggest challenges facing Indian Prime Minister Narendra Modi as he begins his second term is ensuring clean air in a country that’s home to some of the most polluted cities in the world.
The country is burning up more coal to supply cheap electricity to its 1.3 billion people, resulting in polluted air across vast stretches. That’s costing lives and denting the nation’s economic productivity, prompting a policy rethink. Air pollution and how political parties plan to tackle it figured in their manifestos for the first time in national elections that ended May 23.
Efforts in the past to clean up the environment have struggled to clear the test of affordability. India’s fleet of coal-burning power plants, among the biggest sources of air pollution and a dominant provider of cheap energy, have dragged their feet over implementing emission standards, citing cost. A campaign to replace firewood with clean cooking fuel in rural homes needs to be affordable to have greater adoption.A look at what the Modi administration needs to do:
Strengthen the electricity distribution companies. Rejuvenating the power retailers will be crucial for transitioning to cleaner, although costlier electricity. Their losses rose from April to December, reversing a declining trend. Efforts to revive them during Modi’s first term have met with some progress but haven’t been completely successful.
Ensure timely implementation of emissions norms for thermal power plants. One of the reasons this process has moved slowly is a possible reluctance by lenders to finance retrofits in a sector already stressed with a mountain of bad debt. Fixing the money-losing power retailers would be key to resolving the bad loan mess.

Bring fuels, such as natural gas, under the national sales tax regime, helping them compete with dirtier options, such as coal and petcoke. Boosting local production of gas will make it more affordable and help raise its share in the mix to 15%, more than double from now.Accelerate capacity addition in renewable energy, while enabling the grid to deal with the rising flow of intermittent power.Increase use of biomass for energy to help reduce the dependence on crude oil imports and prevent burning of crop residue, a leading air polluter in northern India

Modi's second term to lay groundwork for India's next 25 years: US expert

International News

Congratulating Prime Minister Narendra Modi on his election victory, a top American corporate leader has asserted that in the next five years, the PM will lay the groundwork for India's economic growth and prosperity for the next quarter century.
Prime Minister Narendra Modi on Thursday led his Bharatiya Janata Party to a super-sized victory for a second term in office, winning an absolute majority and on course to touch the 300-seat mark in the 543-member Lok Sabha."Congratulations to Prime Minister Narendra Modi on a decisive election victory. These next five years of Prime Minister Modi's leadership will lay the groundwork for the next 25 years in terms of economic growth and prosperity for the country," John Chambers, Chairman of the Board of Directors at US India Strategic and Partnership Forum (USISPF), said.
Chambers said under Modi's leadership, India will be able to increase its GDP and see economic growth and job-creation, and improve trade and foreign investment.
"The future is bright for India and we at the US-India Strategic Partnership Forum look forward to boosting ties between the two countries like never before," Chambers said, reflecting the views of the American corporate sector, which is increasingly looking at India as an alternative to China when it comes to their manufacturing base.

 Three-term Indian American Congressman Dr Ami Bera issued a statement congratulating the citizens of the country who participated in the elections over the past five weeks."These were the largest democratic elections ever and reflected India's commitment to its founding ideals. I also congratulate Prime Minister Modi on his victory and look forward to working with him and his government to advance the values and interests that bind our two nations," he said.