Interlink fuel prices: Policy

Also, the policy has also suggested some key initiatives that need to be taken by the government that include separating the regulatory responsibility/functions of the government from its current dominance of the energy sector as the principal owner of over 75 per cent of India8217;s energy assets and related infrastructure.

It also says that each regulatory body should be charged with the responsibility of creating an enabling environment to foster competitive and transparent markets for energy supplies/services.

The Integrated Energy Policy is being prepared by the Planning Commission. Member, Planning Commission, Kirit Parikh told The Indian Express that the report would be finalised and put up for discussion by this month-end.

The draft says the solution to the looming energy crisis lies in several measures that cut across the confines of the five energy sub-sectors and related infrastructure such as railways, and ports. It asks firms such as NTPC to acquire technology that increase their fuel conversion efficiency from an average of 30 per cent to 35 per cent.

To exploit its vast coal reserves, the policy has suggested recovering coal bed methane; in-situ coal gasification; carbon-capture and sequestration.

The policy points out the importance to reinforce the National Solar Mission to promote innovation and acquisition of state-of-the-art technologies aimed at reducing cost of solar photo-voltaic technologies, exploring the use of solar thermal technologies for power generation and enhancing applications aimed at effective recovery of heat energy from available solar insulation.

What the Draft Integrated Energy Policy says

8226; All commercial primary energy sources must be priced at trade parity prices at the point of sale

8226; Separate the regulatory responsibility/functions of the government from its current dominance of the energy sector

8226; Each regulatory body must be responsible for creating an environment to foster competitive and transparent markets