Energy policy to stress building N-fuel stockpile

Santanu Banerjee | New Delhi

With the civil nuclear agreement under its belt, the Government has approved an integrated policy that will help the nation attain energy security.

The Government on Friday approved the Integrated Energy Policy which aims at optimal exploitation of domestic resources and exploration and acquisition of assets abroad to attain energy security for the country.

The policy comes in the background of Opposition demands that, since there was no guarantee of fuel supplies under the India-US nuclear deal, the country should have an alternative plan of action ready to face the eventuality of fuel supply disruption.

"India needs to sustain an economic growth of at least nine per cent over the next 25 years. It is necessary to evolve an integrated energy policy that provides a coherent framework covering different energy sources in a consistent manner," Home Minister P Chidambaram told reporters after the Cabinet meeting here. The broad vision of the policy, drafted by the Planning Commission, is to reliably meet the demand for energy services in all parts of the country with safe, clean and convenient energy at the least cost.

The policy suggested energy security could be ensured by expanding the domestic energy resource base and maintaining reserve equivalent to 90 days of oil imports. It also said that building a strategic stockpile of nuclear fuel and acquiring energy assets abroad would play a role in ensuring energy security.

Chidambaram said, "It has been decided to set up a monitoring committee under the chairmanship of the Cabinet Secretary to review the progress of implementation of the policy." According to the policy, tax structures and regulatory philosophy applied in the sector should provide a level-playing field for all players, public or private.

The energy issue was one such matter in the eight point-agenda, which explains why the UPA took five years to shape the Integrated Energy Policy. The policy paper also said that subsidies for electricity and cleaner fuels, kerosene or LPG to targeted households should be delivered through debit cards in a phased manner.

However, the policy is not against private participation to operate community-sized bio-gas plants. "A large-scale socio-economic experiment should be financed to operate community sized biogas plants as commercial enterprise either by a community cooperative or by a commercial entrepreneur," the paper said.

In this connection it said that fuel wood plantations, biogas plants, wood gasifier based power-plants, bio-diesel and ethanol, should be promoted. It also suggested that a National Energy Fund to finance R&D in energy sector should be set up. Incidentally, the Government had announced setting up of monitoring committee on energy policy implementation under the chairmanship of Cabinet Secretary KM Chandrasekhar.