Highlighting the country?s vulnerability to fluctuating global oil prices and the country?s growing energy needs, Prime Minister Manmohan Singh on Saturday, favoured moves to acquire energy assets overseas. He also pointed that energy pricing is an integral aspect of any energy policy and fixing of correct prices is necessary for efficient use of energy.
Stating that energy is an essential input for the country?s growth and that India?s ever-growing energy need would make it increasingly import-dependent, the Prime Minister said. Addressing the full Planning Commission meet on energy, he said that the country should, ?undertake optimal exploitation of domestic energy resources with a view to increasing our country?s energy security. We also need to explore the scope for acquiring energy assets abroad?.
Supporting the Prime Minister?s call for obtaining energy assets overseas, Atomic Energy Commission chairman Anil Kakodkar said the country should consider acquiring uranium assets abroad and expedite the exploration work in the mines in Andhra Pradesh and Meghalaya to help address the fuel shortage problem.
?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 incentive for investment in expanding supplies,? the Prime Minister said. Pointing that present policies in individual energy sectors are, ?not always consistent,? as they are prepared by different ministries, the Prime Minister said that he had asked the Planning Commission to evolve an Integrated Energy Policy, based on a consistent application of economic principles across different energy sources. The expert committee, set up for the purpose under the chairmanship of Kirit Parikh, member (Energy), Planning Commission had submitted its report, the draft Integrated Energy Policy, in August 2006. Stating that the expert committee had suggested a comprehensive energy policy with many specific recommendations, Singh said he had directed the Cabinet secretary to discuss these with concerned ministries.
?Although the approach of the report on the Integrated Energy Policy has been reflected in the 11th Plan, we felt there is a merit in adopting the Integrated Energy Policy that can guide policy in individual energy sectors in the years ahead,? he said.