The objective of the Integrated Energy Policy is to reliably
meet the demand for energy services of all sectors including the lifeline
energy needs of vulnerable households in all parts of the country with safe,
clean and convenient energy at the least-cost. It lays out the strategy
for meeting India’s energy needs for the next 25 years.
Salient features of the Policy:
1. Establish
independent regulation.
2. Tax structure
and regulatory philosophy applied in each energy sector should be consistent with
overall energy policy.
3. Energy pricing: should encourage users to conserve
energy and switch to preferred sources. Domestic petroleum prices should be
adjusted to trade-parity prices.
4. Subsidies must be transparent and targeted.
5. PSUs operating in the energy sector must operate
with autonomy and accountability.
6. India will have to pursue all available fuel and energy options both
domestically and abroad.
7. Energy markets should be competitive wherever
possible.
8. Promote energy-efficiency by enforcing energy
standards effectively.
9. Encourage energy research
10. Renewable energy: Fuel wood plantations, bio-gas
plants, wood gasifier based power plants, bio-diesel and ethanol should be
promoted.
11. Ensure energy security by
-
lowering the
requirement of energy,
-
substituting
imported fuels with alternatives,
-
expanding the
domestic energy resource base,
-
maintaining
reserve equivalent to 90 days of oil imports,
-
building
strategic stockpile of nuclear fuel to counter the risk of disruption of
international fuel supply,
-
acquiring
energy assets abroad and setting up energy using industries such as fertilizer
plants in energy rich countries.
12. Recommended initiatives would have effect on
reducing the green house gas intensity of the economy by as much as by one
third.
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