New Delhi: In a measure to lessen the burden of subsidy on kerosene oil, the government is mulling to bank on solar energy that could be promoted in rural areas. The Shunglu Committee, formed to ameliorate power sector, has suggested the government replacing the use of kerosene with solar energy.

In its report, the Committee headed by VK Shunglu has recommended to connect every village with solar power instead of providing kerosene at subsidized rate.

The panel has categorically stated that the use of solar energy is a better and sustainable alternative in the country that could bring reform in power sector.

“The expense on the installation of solar power machines is relatively very low in comparison with the cost of supplying kerosene. The set up of solar photo voltaic in a village with a total populace of 300 will cost only Rs 2.30 crore,” the panel report asserted.

Solar energy will boost the nation’s energy security. Besides, it will enhance sustainability, reduce pollution threats, lower the costs of mitigating climate change, and keep fossil fuel prices low.

Presently, the sale of kerosene is causing a loss of Rs 22 per liter to the government owned oil companies. The subsidy provided by the government on kerosene as a financial aid to the weaker section of the society is expected to put a burden of Rs 25,000 crore on the exchequer in the financial year 2011-2012.