Integrated energy policy gets cabinet nod

New Delhi: The Union Cabinet approved an Integrated Energy Policy for the country. A monitoring committee, to be chaired by the Cabinet Secretary, will be set up to review the progress of the policy’s implementation.

At present there are five separate ministries Coal, Petroleum and Natural Gas, Atomic Energy, Power and Non-Conventional Energy sources each preoccupied with issues in its own turf.

The integrated policy is expected to explore alternative technologies and possible synergies that would increase energy system efficiency and meet requirement for energy services.

It would allow for relative pricing of different fuels taking into account both their efficiency in use and convenience as well as the amount of pollution they generate. Relative pricing, the Government hopes, would result in inter-fuel choices that are socially and economically desirable.

An integrated policy is also expected to bring in a level playing field for all energy players large or small, public or private, domestic or foreign.

A consistent tax structure for ‘relative prices’ is expected to be introduced, with excise and import duties being consistent across different fuels.

Under an integrated policy, the tax structure on alternative fuels could also be made attractive to promote a more environment friendly policy.

Public infrastructure, such as ports, roads, rail and urban mass transport play an important role in the system. Gas pipeline networks which have large economies of scale are often developed through public efforts or through public-private partnerships.

An integrated policy will ensure that their development is coordinated and functioning regulated. It would also provide the kind of support for R&D in new technologies and new sources that long gestation energy projects require.

According to the Government, the economy has to grow at least 9 per cent over the next 25 years to eradicate poverty.

The Integrated Energy Policy hopes to meet the energy requirements of this growth, given the steep rise in international energy prices since 2006.