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With significant shifts in the global energy market, the Indian Government is working out a new energy policy which will be transparent, investment friendly and also provide energy at affordable prices to the consumer.
Speaking at the 13th Petro India, organised by Observer Research Foundation and the Indian Energy Forum in Delhi, Mr Dharmendra Pradhan, Minister for Oil and Natural Gas, said that ensuring energy security is one of the main challenges of the government. "The government has begun the coal block allocation process, struck after the litigation in the Supreme Court following the coal scam", said the Minister.
He stated that within a few months, some blocks would be auctioned off as suggested by the Supreme Court which had struck down the allotments done by the earlier government.
Earlier, India had invited Saudi Arabia to invest in its underground oil storage project, indicating the government's intention to elevate bilateral ties with OPEC swing producer to a strategic level for the country's energy security.
The Minister said that within a few months, some blocks will be auctioned off as suggested by the Supreme Court which had struck down the allotments done by the earlier government. The Ministry has reportedly been working on a policy which will balance the interests of the producers as well as the consumers.
Railway Minister Suresh Prabhu who also addressed the conference said that the time is right to revisit the government's energy policy. He requested experts at the Petro India to come up with recommendations, may be within two weeks, which will help him to cut down energy cost in the railways.
The Indian government recognises the importance of investments and technology, vital to take the country forward in the energy sector. Pointing out how the US shale gas revolution is changing the global energy market and turning the US from a highly energy importing nation to exporting nation, Mr. Pradhan said the government is studying the various models and decide on the right model for India.
Another main focus of the government is on clean energy. Increasing energy from the renewable sources would reduce the percentage of thermal power share from the present 55%.
The government is also planning to have 3-5 LNG terminals in different States along the East Coast – Tamil Nadu, Andra Pradesh, Orissa, etc.
Delivering the welcome remarks, former Petroleum Secretary SC Tripathi pointed out that irrespective of the government’s efforts, India will continue to be an energy deficit nation as its reserves are only 1% of the global reserves while the demands "The need for an integrated energy ministry as the country need to take an integrated approach to the issue of energy security", he said.
Mr Tripathi also stressed on the need to formulate a policy to acquire assets abroad.
Also present at the conference, Power Secretary P.K. Sinha said that India has made significant progress in the last decade in power generation, with the gap in demand and supply falling to just 3-4% which was over 10% earlier.
"The government is trying to bring down the share of thermal power by increasing renewable energy contribution. It is coming out with a stipulation which makes compulsory for conventional energy producers to produce 10% energy from renewable sources", he said.
Mr Sinha stated that power consumers will be able to choose their provider as the government is planning to split the transmission segment with a regulated company offering network and companies distributing power.
Delivering the State of Debate Address, ORF Director Sunjoy Joshi said the fall in global energy prices has come at the right time for the Modi government which wants to 'dust away the red tape and cobwebs and take a holistic view of the entire spectrum of growth and development needed to position India in its rightful place in the new world order.'
“There can be no better opportunity to use this fall in global energy prices to kick start the Prime Minister’s dream of 'Make in India'. This is the time to launch the narrative for a New India...One that requires plenty of courage, plenty of resilience and plenty of leadership. And for once, we have all three in ample measure,” Mr Joshi said.
Pointing out that something fundamental has changed in the energy market, Mr Joshi said Asia’s largest energy consumers, China, Japan and South Korea, could also gain momentum in the coming months. He said falling energy prices have today given tremendous room for upside in these Asian markets to build given the right boots from bold macro policy.
The conference was also addressed by many top officials of public and private companies and experts.