With the recent increase in diesel prices, there is a need to look at the implications it will have in the future. Since fossil fuel reserves are limited, we have to focus on alternative sources to fulfil our energy requirements.
The government has been providing diesel subsidy for agriculture and transportation of essential goods. But currently, this subsidised diesel is being consumed by malls, luxury cars, sport utility vehicles, office and residential complexes and telecom towers.
Consuming over 3 billion litres of diesel a year, the Indian telecommunications industry is the second-largest consumer of diesel after the Indian Railways. Telecom towers use diesel generators to function; in off-grid areas, diesel generators are the main source of electricity for towers. According to “Dirty Talking”, a report released by Greenpeace India last year, the sector is misusing the diesel subsidy and causing the state exchequer a loss of over Rs 2,600 crore annually.
There has been an estimated 14 per cent increase in the telecom sector’s expenditure owing to the recent increase in diesel prices. This clearly shows that the profitability of the sector will be hit in case of a further increase in diesel prices.
Earlier this year, the Department of Telecommunications issued the green telecom directive mandating the telecom sector to power their network towers through hybrid sources (renewable energy technologies and grid power) and also publicly disclose their carbon emissions. This is certainly a positive step. What is missing though is a compliance mechanism, the inclusion of which will make this directive stronger. Also, the government should look at providing incentives in order to encourage the telecom sector to shift towards renewable energy.
It is time the telecom sector stepped up its efforts to shift to a sustainable business model and embrace renewable energy.
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Shashwat Raj Greenpeace India Bangalore
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