TRANSITION POTENTIAL TO NATURAL GAS IN THE MSME SECTOR IN INDIA'S NATIONAL CAPITAL REGION

The industrial sector is a consumer of energy and a major contributor to greenhouse gas emissions and consequently the target of many government policies to transition to cleaner fuels. The micro, small and medium enterprises, however, are constrained by a number of unique challenges. In this article, Jonathan D Syiemlieh discusses the challenges and opportunities in transitioning these enterprises to natural gas.

- Jonathan D Syiemlieh

The recognition of the importance of a road to a sustainable energy transition for India resonates in the policy priorities of the Government of India (GoI), which include India’s Nationally Determined Contributions (INDCs) committed at the Conference of the Parties in Paris in 2015 (COP21) and the ambitious goals on renewable energy deployment and universal energy access. The GoI has also recognized the need to significantly expedite the consumption of natural gas (NG) so as to reduce air pollution across India, lower carbon intensity, and increase industrial growth.

In this context, TERI undertook a study to assess the potential and impact of a switch to NG from heavier polluting fuels in the MSME (Micro, Small and Medium Enterprises) sector of India’s National Capital Region supported by the World Bank.1 The project was initiated with an overall objective to assess the potential role of NG as a cleaner alternative for improving air quality in urban areas of India and inform policy for designing interventions to increase the uptake of gas.