Plan panel suggests mechanism for energy sector

NEW DELHI: The Planning Commission on Friday said that lack of coordination among various energy ministries was resulting in inefficiency and suggested a ''coordination mechanism'' for optimal utilisation of resources.

A unified Energy Ministry by merging ministries like Power, Petroleum and Coal may not be possible, but some "coordination mechanism" should be established among them, the Commission''s member in-charge of energy, Kirit Parikh, said.

He suggested a coordinated policy framework which would lay out principles as guidelines for the ministries for optimal utilisation of energy resources at minimal costs.

"At present each ministry in the energy sector -- Power, Coal and Mines and MNES -- all has separate policies. Each is trying to pull things in their own direction. This is making the entire energy scene more expensive and inefficient if not vulnerable," Parikh, who is also heading an expert group for formulating an integrated energy policy, said.

Parikh said coordination among ministries in the sector would also help address issues like monopoly of the state, over employment in certain sectors like coal and presence of trade unions. This would also take care of tariff issues and reforms, he said.

On the integrated energy policy, Parikh said work was on and the eight working groups set up to prepare background papers would meet soon for discussions after which an interim report is likely to be formulated by November. The final draft policy would be ready by January next year.