PM's opening remarks at the first meeting of the Energy Coordination Committee
Speaker: Dr.Manmohan Singh
Date: August 6, 2005 New Delhi

PM's opening remarks at the first meeting of the Energy Coordination Committee Hindi Version "The availability of adequate, reliable and reasonably priced energy supplies is a sine qua non for achieving the growth targets we have set ourselves.  A rate of growth of 8% can be sustained only if there is a growth in energy supplies at well over 5% pa.  In order to achieve this, we need to focus not just on basic fuel supplies, and power generation capacities, but also the infrastructure required to deliver the fuel and power to their consumers.  This is one of the most important challenges facing our country today and we need to take a focused, holistic approach to address the issue. 2.	The achievement of energy security necessitates diversification of our energy resources, and the sources of their supply, as well as measures for conservation of energy.  We also need to be cognizant of the scale of investments required, and the scope for public and the need for private investment, as well as the legal and institutional framework required for promoting such investment. 3.	Fortunately, India is blessed with the third largest coal supplies in the world, although not of the best quality.  However, we have been unable to fully exploit this potential, at least partly on account of pervasive inefficiencies.  Some policy initiatives have been taken recently, but much more needs to be done, and I hope this Committee will contribute to aligning the coal sector policies with the nation's requirements. 4.	Similarly, concerted efforts need to be taken to step up the exploitation of domestic oil and gas reserves, and aggressively seek out external supplies.  We have witnessed recently a sharp rise in international oil prices, and we recall vividly the 'oil shock' of the early 1970s and its later manifestations, and their impact on the global economy, as well as on India.  We have to ensure that we build up adequate energy security to insulate the economy from any future shock. 5.	Much needed reforms have been initiated in the power sector with the implementation of the new Electricity Act.  However, critical aspects such as distribution reforms, upgradation of transmission networks and provision of open access, as well as investments in both hydel and thermal generation need our close attention. 6.	Atomic energy will have to play a much larger role in the future in our quest for energy security.  I trust that our engagements with the US will stand us in good stead, but regardless of this, we must fully gear up domestic efforts in order to achieve the necessary growth in commercial nuclear energy. 7.	The increased production and consumption of energy is likely to result in adverse consequences for the environment, and human health.  We need therefore to give careful consideration to the adoption of renewable sources of energy and energy efficient and clean technologies, to the extent financially feasible.  Maximum advantage should be taken of the opportunities provided by the Clean Development Mechanism under the Kyoto Protocol. 8.	It is a matter of deep shame that over half our population does not have access to clean energy for lighting and cooking.  We are committed in the NCMP to taking electric power to all households in five years, and must ensure that we take all necessary steps to achieve this.  A proper targeting of subsidies is of vital concern in this context. 9.	I trust that this Committee will be able to fully draw upon the wide expertise available in the various departments and experts present here, as well as such others as may be necessary, in order to come up with energy policy initiatives that meet the concerns I have outlined, and the measures and monitoring required for their implementation."