"This meeting of the Planning Commission has been called to discuss a draft Integrated Energy Policy document prepared by the Planning Commission.

Energy is a crucial input in our development and our energy requirement for growth is indeed very large. From all available information, we are also likely to be increasingly import-dependent. This makes us vulnerable to uncertainty of international prices and also reliability of supplies.

It is therefore important to undertake optimal exploitation of domestic energy resources with a view to increasing our country's energy security. We also need to explore the scope for acquiring energy assets abroad.

Energy pricing is a key component of energy policy, since appropriate energy prices must provide the incentives needed for efficient use of energy and also the incentive for investment in expanding supplies.

Currently, policies relating to individual energy sectors are set by a number of different ministries reflecting historical evolution. This means the policies followed in different sectors are not always internally consistent.

It is therefore, critical that we evolve an Integrated Energy Policy based on a consistent application of economic principles across different energy sources. To this end, I had asked Deputy Chairman, Planning Commission to constitute an expert committee to suggest such a policy. An expert committee was constituted under the chairmanship of Dr. Kirit Parikh, Member (Energy), Planning Commission and this group had submitted its report in August 2006.

The report suggested a comprehensive energy policy for the country, with many specific recommendations. Subsequently, at the Energy Coordination Committee, I had directed the Cabinet Secretary to discuss with the concerned Ministries the implementation of these recommendations. The recommendations were comprehensively discussed and we have made some progress in implementing some of the recommendations by the concerned ministries. Action has been initiated on other recommendations, but we are as yet far from complete implementation. This is not surprising since full implementation has far reaching implications and necessarily will take time.

Although the approach of the Report on Integrated Energy Policy has been reflected in the Eleventh Plan we felt there is merit in adopting an Integrated Energy Policy that can guide policy in individual energy sectors in the years ahead.

The draft policy document, circulated for this meeting seeks to present such a framework indicating the principles which should guide energy policy in the years ahead.

I now request Deputy Chairman to briefly introduce the document after which I will welcome comments from Ministers especially those responsible for the energy sectors."