Salient features of Integrated Energy Policy & Its implication on the Energy Security needs of the country. Comment!

To meet the new challenges, India under the expert guidance of the planning commission, formulated an Integrated Energy policy (IEP), which was recently approved by the cabinet. India needs to sustain 8% to 10% growth rate to eradicate poverty and meet its economic & human development goals. In this situation India faces dual challenge of meeting its energy needs and providing adequate energy of desired quality to users in a sustainable manner and at reasonable costs. That is the reason behind the adaptation of IEP. This is a comprehensive policy on energy for India.

The policy envisages a competitive energy market and market determined energy pricing Today the price is decided by the government and which increases burden on public sector oil companies. This is directed to reduce the impact of increasing financial burden on public sector companies. Market driven pricing policy will definitely help in bridging fiscal deficit by down sizing unnecessary POL subsidies. Allocation of energy resources should be based on competition.

IEP also calls for transparent and targeted subsidy disbursal system. Thus highly subsidized petroleum products will reach to the targeted section of the population and thereby check their black marketing. It will be reduce unnecessary pressure on public exchequer. IEP also aims at improved efficiencies across the energy chain. The policy seeks optimal exploitation of domestic energy resources and also vigorous exploration and acquisition of energy assets abroad, so that energy security can be attained effectively.

This policy aims to meet energy demands of all sectors. Therefore, not only production of energy will be increased but also its transfer will be made cost effective. Consideration of environment is also taken into account.

IEP is going to play a crucial role on the energy security needs of the country because for the first time government has realized the importance of an IEP. Its vision is to envisions to reliably meet the demand for energy services of all sectors including the lifeline energy needs vulnerable households, in all over the country, with convenient & safe energy at the minimum possible cost in a technically efficient, economically viable and environmentally sustainable manner.

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