DRAFT INTEGRATED ENERGY POLICY - FOR PUBLIC DEBATE
Quotes from the Draft:
++ Most new oil and gas will come from a politically uncertain middle-east.
++ Energy security concerns are driving key consumers such as the US, China and Japan (that together account for some 40% of the world's primary energy consumption) to seek coal - the world's most abundant fossil fuel.
++ A competitive market without any entry barriers is theoretically the most efficient way to realize optimal fuel and technology choices for extraction, conversion, transportation, distribution and end use of energy
++ The tax structure and regulation across energy sub-sectors should be consistent and institutional arrangements should provide a level playing field to all players. Social objectives should be ideally met through direct transfers. Environmental externalities should be treated uniformly and internalised, as far as possible, under the polluter pays principle
++ Coal Shall Remain India's Primary Energy Source till 2031-32, Current shortages are a concern:
++ Coal accounts for over 50% of India's commercial energy consumption and some 78% of domestic coal production is dedicated to power generation
++ Imported coal is far more cost competitive to imported gas for power generation especially along the western & southern coasts of India
++ Reduce Cost of Power: In terms of purchasing power parity, power tariffs in India for industry, commerce & large households are among the highest in the world
++ Only a competitive free market can do an efficient job of price determination
++ Natural Gas is a non-tradable commodity in the absences of significant investments in pipelines or, alternatively, in liquification, cryogenic shipping & regasification
++ Promote urban mass transport, freight movement by railways, and energy efficient vehicles
++ Enforce minimum fuel efficiency, standards for all vehicles
++ Annual audits must include energy audits for all specified energy intensive industries and industries with a turnover exceeding say Rs 100 crores
++ The benefits in empowerment, health, environment and reduced pressure on deforestation and hence the water table and soil erosion are well worth the cost – even without considering the benefits from the likely increase in productivity of rural India.
++ The top 5% of India's households could pay for this subsidy through a cess on their incomes or a more widely distributed cess on consumption could fund this subsidy burden.