Need radical reforms across energy sec: Report
integrated energy policy document which sets the broad framework of the future energy policy in the country has called for radical policy and legislative changes across energy sectors.
By Ganapathy Subramaniam, TNN |
NEW DELHI: The integrated energy policy document which sets the broad framework of the future energy policy in the country has called for radical policy and legislative changes across energy sectors. Allowing private players in the coal industry through an amendment of the Coal Nationalisation Act, 1973 creation of real competition in the petroleum sector through a corrective pricing strategy, improving efficiency at the distribution level by reducing Aggregate Technical and Commercial losses and independent regulators for individual energy sub-groups are some of the key recommendations of the energy policy paper.
The report sets out a broad framework that would ensure adequate supply of energy at the least cost, creation of competitive energy markets, improved efficiencies in energy producing and consuming sectors, accounting for environmental concerns in energy policy and consistent and balanced regulation in the sector.
Planning Commission member for energy Kirit Parekh, who was the chairman of the expert committee said, "we pay one of the highest prices for energy in purchasing power parity terms. This has eroded the competitiveness of many sectors of the economy. The challenge is to ensure adequate supply of energy at the least possible cost."
Broadly, the report has recommended consistent relative prices, level playing field for all players, uniform treatment of externalities, development of public infrastructure, regionally balanced development and energy for the poor.
Given that coal will continue to be the chief source of energy for India till at least 2031-32, the expert committee it has also called for the stepping up of domestic coal production through allocation of coal blocks to central and state public sector units and captive consumers. To ensure that the domestic coal industry is more competitive, the report suggests augmenting infrastructure facilities to ease the import of coal. More importantly, it has suggested building consensus on the need to amend and reform the Coal Mines (Nationalisation) Act, 1973.
In the power sector, the report has recommended restructuring of the Accelerated Power Development and Reforms Programme (APDRP) to reduce AT&C losses, a liberal captive and group captive regime,. More importantly, it calls for tariff based bidding and time of day tariffs. It has also called for extension of fiscal sops given to mega projects to all power projects and removal of entry barriers for new players in the power sector.
For the petroleum and natural gas component, the report has suggested creation of real competition in the market through full price competition at the refinery gate and at the retail level. It has also called for the strengthening of the directorate general of hydro carbons, and recommended that the regulator be empowered to consider both upstream and downstream issues.
In a bid to encourage alternative fuels, the report has recommended that electricity regulators mandate differential tariffs for power generated from renewable sources. This would encourage utilities to integrate wind, hydro, cogeneration into their electricity basket.
The report sets out a broad framework that would ensure adequate supply of energy at the least cost, creation of competitive energy markets, improved efficiencies in energy producing and consuming sectors, accounting for environmental concerns in energy policy and consistent and balanced regulation in the sector.
Planning Commission member for energy Kirit Parekh, who was the chairman of the expert committee said, "we pay one of the highest prices for energy in purchasing power parity terms. This has eroded the competitiveness of many sectors of the economy. The challenge is to ensure adequate supply of energy at the least possible cost."
Broadly, the report has recommended consistent relative prices, level playing field for all players, uniform treatment of externalities, development of public infrastructure, regionally balanced development and energy for the poor.
Given that coal will continue to be the chief source of energy for India till at least 2031-32, the expert committee it has also called for the stepping up of domestic coal production through allocation of coal blocks to central and state public sector units and captive consumers. To ensure that the domestic coal industry is more competitive, the report suggests augmenting infrastructure facilities to ease the import of coal. More importantly, it has suggested building consensus on the need to amend and reform the Coal Mines (Nationalisation) Act, 1973.
In the power sector, the report has recommended restructuring of the Accelerated Power Development and Reforms Programme (APDRP) to reduce AT&C losses, a liberal captive and group captive regime,. More importantly, it calls for tariff based bidding and time of day tariffs. It has also called for extension of fiscal sops given to mega projects to all power projects and removal of entry barriers for new players in the power sector.
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For the petroleum and natural gas component, the report has suggested creation of real competition in the market through full price competition at the refinery gate and at the retail level. It has also called for the strengthening of the directorate general of hydro carbons, and recommended that the regulator be empowered to consider both upstream and downstream issues.
In a bid to encourage alternative fuels, the report has recommended that electricity regulators mandate differential tariffs for power generated from renewable sources. This would encourage utilities to integrate wind, hydro, cogeneration into their electricity basket.
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