India must move with the times by reforming tax and pricing regimes for different fuels as well as take a unified approach to energy security by cutting red tape to ensure that efforts to sustain an economic growth rate of 8-10% do not run out of fuel.
This was the overarching message that came through on Friday at a seminar organised by 'The Economic Times Energise India Summit'.
Flagging the issues, Planning Commission deputy chairman Montek Singh Ahluwalia pointed to the lack of uniform regulation and taxation regimes for fuels. Different fuels have different taxation regimes which are "complicated".
This is a vote for a system where fuels are priced according to their heating capacity, or calorific value, as propounded by the plan panel in the integrated energy policy as a way to remove the skewed competition between fossil fuels such as coal and gas.
For a holistic approach to energy, he suggested a single ministry or at least a uniform policy. "There is not a single ministry of energy. Ministries of coal, power, water resources, non-renewable energy, department of atomic energy, rural development and agriculture ministries are involved in energy generation. The last two ministries are responsible for developing bio fuel, though the demarcation is not clear," Ahluwalia said.
Taking his cue, former ONGC chairman Subir Raha said, "Enough planning has been done by the (planning) commission in 55 years, now we need a Doing Commission." On how red tape promotes duplication and creates inefficiency, he said, "When a company is prospecting for oil and gas, it does a scan of the area and finds mineral reserves also. But there is no forum where this information can be exchanged."
Highlighting the difference in the efficiency levels of the private sector and government-run efforts, which are marked by time and budget over-runs, Raha said, "A professionally managed, market-funded SPV can produce 100 million cubic metres a day of gas by 2020." He also sought a change in the "mindless obsession" against oil imports.
Building on the theme, ONGC Videsh CEO R S Butola said acquiring overseas acreages ensured not only security of physical delivery of oil but also fiscal cushion against volatility.
This was the overarching message that came through on Friday at a seminar organised by 'The Economic Times Energise India Summit'.
Flagging the issues, Planning Commission deputy chairman Montek Singh Ahluwalia pointed to the lack of uniform regulation and taxation regimes for fuels. Different fuels have different taxation regimes which are "complicated".
This is a vote for a system where fuels are priced according to their heating capacity, or calorific value, as propounded by the plan panel in the integrated energy policy as a way to remove the skewed competition between fossil fuels such as coal and gas.
For a holistic approach to energy, he suggested a single ministry or at least a uniform policy. "There is not a single ministry of energy. Ministries of coal, power, water resources, non-renewable energy, department of atomic energy, rural development and agriculture ministries are involved in energy generation. The last two ministries are responsible for developing bio fuel, though the demarcation is not clear," Ahluwalia said.
Taking his cue, former ONGC chairman Subir Raha said, "Enough planning has been done by the (planning) commission in 55 years, now we need a Doing Commission." On how red tape promotes duplication and creates inefficiency, he said, "When a company is prospecting for oil and gas, it does a scan of the area and finds mineral reserves also. But there is no forum where this information can be exchanged."
Highlighting the difference in the efficiency levels of the private sector and government-run efforts, which are marked by time and budget over-runs, Raha said, "A professionally managed, market-funded SPV can produce 100 million cubic metres a day of gas by 2020." He also sought a change in the "mindless obsession" against oil imports.
Building on the theme, ONGC Videsh CEO R S Butola said acquiring overseas acreages ensured not only security of physical delivery of oil but also fiscal cushion against volatility.
