India to evolve policy on energy security

Monday, 07 June 2004, 19:30 IST
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NEW DELHI: India will frame a national policy on energy security that will include focus on overseas investments in oil and gas exploration and enhancing power generation capacity, President APJ Abdul Kalam said in New Delhi on Monday. In his first address to a joint session of Parliament after the formation of the 14th Lok Sabha, Kalam said, "The Government will put in place policies to enhance the country's energy security with special emphasis on petroleum and natural gas. Overseas investments in the hydrocarbon industry will be actively encouraged." Dependent on imports for 70 per cent of its hydrocarbon requirement, India has been scouting for oil equity overseas since early 1990s to secure supplies. In the last six years, largely through state-owned ONGC Videsh Ltd, the country has managed to acquire stake in 11 exploration blocks in countries like Russia, Myanmar, Iran, Iraq, Sudan, Vietnam and Libya. The need for a comprehensive energy security policy has long been debated but has not been framed, with ad hoc or separate policies being chalked out for different sectors like power. Even in the case of power, a policy on non-conventional energy is still awaited, though the Government has set a target of adding 10,000 MW generation capacity through renewable sources in the mix of energy sources. Focusing on the continuing shortage in power supplies, Kalam said, "A special programme will be launched to ensure that each household has full access to reliable power. Public investment in the power sector will be stepped up substantially." With a target to double generation capacity by 2012 with the addition of 100,000 MW, India has stepped up investment largely through state-owned power majors to enhance capacity even as it hopes to attract private investment through reforms to turn around state-owned utilities and reduce power thefts. For this, the President said, "Private sector participation in generation and distribution will be actively encouraged. Power sector reforms will be continued in such a way that all sections of society get quality power at affordable price." He emphasised that energy conservation will receive priority attention of the Government. Towards this end, India already has legislation in place to encourage power conservation through standardisation of designs for efficient electricity utilisation. Through conservation, the Government estimates around 20,000 MW can be optimally saved and used to bridge the gap between demand and supply.
Source: IANS