Pricing, overseas assets key to Integrated Energy Policy
Monday, 22 September 2008
NEW DELHI, Sep 21 (PTI): Prime Minister Manmohan Singh yesterday cautioned that India is vulnerable to uncertain global prices and supply in the face of growing import dependence and said energy pricing and acquisition of overseas assets would be key components of the new integrated policy.
"From all available information, we are also likely to be increasingly import dependent. This makes us vulnerable to uncertainty of international prices and reliability of supplies," Singh warned while chairing the meeting of the Planning Commission on 'Integrated Energy Policy.'
Pointing that present policies in individual energy sectors are "not always consistent," Singh said that full implementation of the recommendations of an expert committee would take time.
"This is not surprising since full implementation has far reaching implications and necessarily will take time," he said while emphasising that energy pricing would be a key component of the new policy.
"... appropriate energy prices must provide the incentives needed for efficient use of energy and also the incentive for investment in expanding supplies," he said.
The meeting comes ahead of upcoming visit of Singh to the U.S., where he is expected to sign the nuclear agreement that would pave the way for the increased generation of atomic energy in the country.
In the face of India's increasing import dependence, particularly the crude oil whose prices had peaked to 147 dollars a barrel two month ago, Singh emphasised the need for acquiring the energy assets overseas.
"Currently, policies relating to individual energy sectors are set by a number of different ministries reflecting historical evolution. This means the policies followed in different sectors are not always internally consistent," Sing said.
Stating that recommendations of the expert committee, set up by the Planning Commission under the chairmanship of Kirit Parikh, suggested a comprehensive energy policy with many specific recommendations, Singh said he had directed the Cabinet Secretary to discuss these with concerned Ministries.
"Although the approach of the report on Integrated Energy Policy has been reflected in the 11th Plan, we felt there is a merit in adopting the Integrated Energy Policy that can guide policy in individual energy sectors in the years ahead," he said.
The Prime Minister said that it was critical to have an Integrated Energy Policy based on a consistent application of economic principles across different energy sources.
"From all available information, we are also likely to be increasingly import dependent. This makes us vulnerable to uncertainty of international prices and reliability of supplies," Singh warned while chairing the meeting of the Planning Commission on 'Integrated Energy Policy.'
Pointing that present policies in individual energy sectors are "not always consistent," Singh said that full implementation of the recommendations of an expert committee would take time.
"This is not surprising since full implementation has far reaching implications and necessarily will take time," he said while emphasising that energy pricing would be a key component of the new policy.
"... appropriate energy prices must provide the incentives needed for efficient use of energy and also the incentive for investment in expanding supplies," he said.
The meeting comes ahead of upcoming visit of Singh to the U.S., where he is expected to sign the nuclear agreement that would pave the way for the increased generation of atomic energy in the country.
In the face of India's increasing import dependence, particularly the crude oil whose prices had peaked to 147 dollars a barrel two month ago, Singh emphasised the need for acquiring the energy assets overseas.
"Currently, policies relating to individual energy sectors are set by a number of different ministries reflecting historical evolution. This means the policies followed in different sectors are not always internally consistent," Sing said.
Stating that recommendations of the expert committee, set up by the Planning Commission under the chairmanship of Kirit Parikh, suggested a comprehensive energy policy with many specific recommendations, Singh said he had directed the Cabinet Secretary to discuss these with concerned Ministries.
"Although the approach of the report on Integrated Energy Policy has been reflected in the 11th Plan, we felt there is a merit in adopting the Integrated Energy Policy that can guide policy in individual energy sectors in the years ahead," he said.
The Prime Minister said that it was critical to have an Integrated Energy Policy based on a consistent application of economic principles across different energy sources.