India’s Energy Policy Report
Posted on : 16 Jan 2020Views: 333
- The International Energy Agency suggested government adopt a long-term energy plan for the country with focus on rationalising the energy prices, building energy infrastructure needs, energy security and access to affordable energy even as the government strives to open up the sector for private players and move towards cleaner fuels across sectors.
- The draft National Energy Policy by NITI Aayog, currently under consultation, is an excellent framework and should be adopted swiftly to guide policy making, implementation and enforcement across central and state governments
- The draft National Energy Policy of NITI Aayog has been in works for years and has been under consideration since 2017 but hasn’t seen the light of the day because of several inter-ministerial differences.
- Commenting on the energy prices in India, IEA suggested government should continue to rationalise pricing methodologies, subsidies and cross-subsidies across the energy sector.
- Continue reducing and consider phasing out fossil fuel subsidies through the reform of the LPG scheme in favour of cleaner fuels.
- According to IEA, India spent $25 billion in 2018 on subsidies for the consumption of fossil fuels, mostly supporting oil consumption in the form of LPG ($17 billion) and gas ($4 illion).
- While the diesel subsidy ended in 2014-15, government is gradually increasing the prices of kerosene and cooking gas (LPG to phase out the subsidies, it noted).
- Hailing India’s energy sector reforms, including the opening up of coal mining to private sector, IEA said India now has the institutional framework it needs to attract more investment for its growing energy needs.
- Emphasizing on the need for a strong monitoring, implementation and compliance of policies and regulations in the sector, IEA suggested India needs to improve the collection, consistency, transparency and availability of energy data across the energy system at central and state government levels.
- According to IEA, energy research, development and deployment (RD&D) can be a strong enabler of India’s energy policy goals while also contributing to broader national priorities such as the “Make in India” manufacturing initiative. “It would also support the engagement of private and public industry actors”.
Article Related Questions
The draft National Energy Policy is been developed by?
1.The Energy and Resources Institute
2.Bureau of Energy Efficiency
4.Indian Energy Exchange
Right Ans : NITI Aayog