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Kamal Narang

Focussing on power: The Prime Minister, Dr. Manmohan Singh, flanked by the Union Power Minister, Mr Sushil Kumar Shinde, and the Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia, at the full Planning Commission meeting in the Capital on Saturday. –

Our Bureau

New Delhi, Sept. 20 The Prime Minister, Dr Manmohan Singh, has said the issue of energy pricing and acquisition of overseas assets by Indian utilities would be among key focus areas of a new integrated energy policy on the anvil.

Dr Singh also struck a cautionary note on India’s vulnerability to uncertain global prices while chairing a meeting of the Planning Commission, which was convened to discuss the Draft Integrated Energy Policy prepared by the panel, here on Saturday.

“Energy pricing is a key component of energy policy, since appropriate energy prices must provide the incentives needed for efficient use of energy and also the incentives for investment in expanding supplies,” Dr Singh said in the meeting.

Pointing that present policies in individual energy sectors are “not always consistent”, Dr Singh said full implementation of the recommendations of the expert committee would take time. “This is not surprising since full implementation has far-reaching implications and will necessarily take time,” he said.

Those who attended the meeting included the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, the Power Minister, Mr Sushilkumar Shinde, and the New and Renewable Energy Minister, Mr Vilas Muttemwar.

Briefing newspersons after the meeting, Mr Ahluwalia said he was hopeful that the final draft of the Integrated Energy Policy, which seeks to align domestic energy prices with global levels, will come for Cabinet’s approval in a month.

“Prices must be market determined but subject to optimal energy taxes to reflect externalities,” the draft said, while calling for regulations to take care of anti-competitive behaviour. “If we are going to be dependent on imports, domestic energy prices have to reflect the international prices except for the poor, where there is a case for subsidy but it should be targeted,” Mr Ahluwalia said.

The policy will also seek to create a mechanism for co-ordination between various ministries like petroleum and natural gas, coal, power, water resources, atomic energy, new and renewable energy, and finance.

The Planning Commission Member (Energy), Mr Kirit Parikh, said there was a need to allow use of infrastructure facilities such as gas pipelines and electricity transmission lines on a common carrier basis.

The policy will also seek to address impediments preventing private investment in the sector and also look to promote energy efficiency.

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