Where did the 'green' go?

The Budget dashes the hopes generated in the run-up. The key issues concerning energy and environmental challenges were given a rather lukewarm treatment. One of the burning issues that should have been resolved when oil prices slumped is petroleum pricing. Despite all the hype, recognition of India\'s import dependence and, in turn, sensitivity to international price fluctuations, the only big promise in the Budget was yet another expert group on the subject. The focus is only on petrol and diesel. It\'s time the government addressed LPG and kerosene subsidy as well. Even if we have to wait for a smart card system, before moving to an effective subsidy delivery system, the groundwork for these changes is needed. The signals on natural gas have been much more positive, both in the development of a blue print for gas highways and the clarification that the National Gas Grid this leads to will be based on the common carrier principle. The significant domestic finds that we have had in recent years necessitate this scale of attention. What is unclear is the emphasis on LNG infrastructure. India has sunk funds in it, which should be utilised, but investing more in such facilities should be with greater care. Clarifications on extending the tax holiday to profits from commercial production of natural gas may increase response to the blocks under the Nelp VIII round and the investment-linked tax benefits to pipelines must be lauded. The recognition of the role of renewable energy for India\'s energy security and for protecting the Earth\'s climate system bodes well for this sector. However, what was confounding was the reduction in customs duty on \'permanent magnets\' used in wind turbines! The clarification on the double taxation that petro-diesel blended with bio-diesel was being subjected to is welcome. With no other substantial incentives provided to this sector, actions, once again, belie apparent intent. Of course, the FM has committed to funds for the eight national missions under the National Action Plan on Climate Change, which will hopefully finalise their strategies before the Copenhagen Climate Summit in December. Possibly the most \'green\' part of the Budget speech was its silence on coal -- one can only interpret this to mean that India is finally recognising the need to redefine its energy options for the future!