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Power Minister calls for shift in energy mix
By Our Special Correspondent
NEW DELHI, DEC. 6. The Union Power Minister, Mr. Suresh Prabhu, today called for a shift in the country's ``energy mix'' so that the dependence on imports could be minimised.
Addressing the Federation of Indian Chambers of Commerce and Industry's annual session meeting here today, Mr. Prabhu said at present two-thirds of the energy requirement were being imported that could jeopardise India's economic security. He, therefore, suggested that there was need for developing alternative renewable energy sources, thereby diminishing the dependence on imports.
He pointed out that today only less than 1.5 per cent of the incremental energy requirement was met through renewable energy sources and this needed to be increased to at least 20 per cent in the next 25 years as to attain the kind of security that India would need in the energy sector. The share of nuclear energy and hydro-electricity should also go up to 20 per cent each, he added.
The Minister also said cross-subsidy in power would gradually go away which would help reduce tariff for industry, thereby increasing their competitive advantage. A new legislation was already before Parliament which would make it mandatory for all States to have regulatory commissions for electricity boards, he said and pointed out that any subsidisation for the poorer sections of the society would have to be borne by the respective State governments.
Participating in the meeting, the Congress (I) leader, Mr. Pranab Mukherjee, pointed out that 76 per cent of the total foreign direct investment last year went to industrialised countries. Therefore, it was necessary to re-define self-reliance to ensure economic security. Mr. Mukherjee said over the last three years, the combined foreign direct investment in all developing countries, including India, came down from 36 per cent to 24 per cent. In this context, he said India would have to find new forms of self-reliance.
The Samajwadi Party leader, Mr. Amar Singh, in his intervention said that those issues which were not disputed could be taken up first and the Government could move ahead with reforms rather than raking up controversies over reforms. The CPI leader, Mr. A. B. Bardhan, pointed out that expanding the market by increasing the purchasing power of the rural population was necessary for economic security. In this context, he said land redistribution was necessary for increasing the purchasing power of the people. Referring the Enron episode, Mr. Bardhan said the power reforms should not mean bringing in more Enrons.
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