Former Prime Minister of India - Shri Atal Bihari Vajpayee

Prime Minister Shri Atal Bihari Vajpayee's inaugural speech at the International Conference on strategies for energy conservation in the new millennium

The Prime Minister, Shri Atal Bihari Vajpayee inaugurated the ~International Conference on strategies for energy conservation in the new millennium~, here today. Union Minister for Power, Shri Suresh Prabhu; Minister of State for Power, Smt. Jayawanti Behn; Secretary, Ministry of Power, Shri R.V. Shahi; Chairman IPCC and Director General, TERI, Dr. R.K. Pachauri; and Secretary General FICCI, Shri Amit Mitra were among those present on the occasion.

The following is the text of the speech of the Prime Minister on the occasion:

~I am happy to be present at the inauguration of this international Conference on ‘Strategies for Energy Conservation~. I commend the organisers on their timely initiative.

It is well known that the energy consumption of countries are closely related to their levels of development. Without adequate and cost-effective energy supplies, economic growth rates may be badly affected. This is particularly true of developing countries where per capita levels of energy use are low. India is no exception to this rule. Our economic growth prospects are closely tied to the quality and quantity of energy we are able to provide.

However, energy requirement is one thing, and energy supply is another. For too long, the world has focussed on increase in energy supply, including, in particular, through electricity generation. However, there is now increasing realisation that most grid based power supply, transmission, and distribution systems are wasteful, and by saving energy, more of it can be delivered at lower cost to the user. Similarly, energy is useful, not in itself, but for the services it can provide. If the services provided by energy use can be delivered using less energy, in many cases this would be economically beneficial. Again, almost all conventional energy systems involve adverse environment impacts on local, regional and global scales. If energy is conserved in generation, transmission, distribution, and end-use, all such environmental impacts would also be reduced. For example, our second largest public health problem is indoor air pollution from biomass cookstoves. Replacement of traditional chulhas with energy efficient designs would reduce such health impacts, pressure on forests, and the drudgery of rural women who have to spend hours each day collecting fuelwood. Finally, dependence on imported fossil fuels exposes our economy to highly volatile global hydrocarbon markets. Through cost-effective energy conservation, this exposure can be substantially reduced.

India’s cost-effective energy conservation potential has been estimated by the Planning Commission at 23 percent of total commercial energy generated. In the power sector, our peak and base load shortages are 8 % and 13 % respectively. A national movement for energy conservation can significantly reduce the need for fresh investment in energy supply systems in coming years. It is imperative that we make all-out efforts to realise this potential. Energy conservation is an objective to which all of us in the country can contribute. Whether a household or a factory, a small shop or a large commercial building, a farmer or a office worker, every user and producer of energy can and must make this effort for his own benefit, as well as that of the nation.

With precisely this objective in mind, my Government has enacted the Energy Conservation Act. The Act promotes competition, sharing information, creating awareness and motivating stakeholders. It encourages a transparent, self-regulatory mechanism and the use of market incentives to promote energy efficiency, while carefully avoiding intrusive regulatory mechanisms.

A statutory Bureau of Energy Efficiency has been established. The Bureau has prepared a comprehensive Energy Conservation Action Plan. I am happy to release this Action Plan to the Nation today. We look forward to the implementation of this Action Plan over the coming weeks and months. We invite our financial institutions, research institutions, voluntary organisations, the corporate sector, and other development partners, including multilateral and bilateral agencies, to partner all levels of Government – Central, State, Panchayat, and Municipal, in implementation of all aspects of the Action Plan.

I am very much aware that the Government of India, including Public Sector Undertakings, the Railways, Airports, Ports, and Defence establishments is the single largest consumer of energy in the country. My Government is committed to setting an example by implementing the provisions of the Energy Conservation Act in all its establishments. I am happy to announce today that Hon. Rashtrapatiji has kindly agreed that an energy audit may be carried out of the Rashtrapati Bhavan, with a view to implementing energy conservation measures. Similar energy audits of the North and South Blocks of the Central Secretariat would also be carried out.

I call on all Government organisations to reduce their energy consumption by 30% in the next 5 years. An effective method to achieve this target, which has already been proven in several public buildings, is through contracts for guaranteed levels of energy efficiency improvements involving energy service companies. I urge all Ministries and Departments of the Government of India and the PSUs under them to provide information on the steps taken towards this goal in their Annual Reports. I urge the Ministry of Power to assist other Ministries, in particular the CPWD, in implementing such programmes through creation of awareness and capacity building. The Ministry of Finance should facilitate viable lending by financial institutions to energy service companies for implementing this programme.

I call on the Chief Ministers of all States and Union Territories to similarly implement energy conservation measures required under the Act in all State and Municipal government establishments. If the Central and State Governments provide the lead, the private sector, and even households will surely follow, not least because energy conservation makes economic sense. The Ministry of Power must create wide awareness of the fact that energy efficiency projects are financially viable and accordingly, may be commercially financed. We look forward to energy savings of 20 percent over the next five years from the private sector.

In this national endeavour, I am certain that our kisans will, as always, respond magnificently. Agriculture is also a major user of energy, with a large potential for energy savings. With acceleration of power sector reforms, termination of the Administered Pricing Mechanism for petroleum products, and inevitable reduction of energy subsidies, our kisans will gain enormous benefits from energy conservation measures. These measures will also help optimally utilize, and conserve, surface and ground water sources. However, they will need technical guidance, and access to credit for purchase of energy efficient equipment. The Ministries of Finance, Power and Agriculture should jointly respond to these requirements.

Friends, for too long, throughout the world, energy ~conservation~ has in practice meant energy ~conversation~. This time, I ask of all of us, to ~walk the talk~.

Thank you. ~