The Prime Minister chaired a meeting of the Energy Coordination Committee to discuss proposals pertaining to the development of solar energy and other sources of renewable energy. Against the background of rising crude oil prices and the concern about climate change and global warming the Prime Minister underlined the importance of developing renewable energy in India.

The Prime Minister authorized the Ministry of New and Renewable Energy to draft schemes and guidelines for the introduction of Renewable Energy Certificates to encourage States to promote and trade in renewable energy. The Ministry was also asked to come forward with a draft legislation for the promotion and accelerated growth of renewable energy sector.

The Prime Minister said that the Government of India will soon set up a Solar Energy Mission and promote the use of solar lanterns across the country. Members emphasized the vital importance of replacing kerosene lanterns with solar lanterns both on account of India's import dependence on crude oil, the high fiscal subsidy for kerosene and the environmental benefits of solar energy over kerosene.

The Prime Minister asked the Minister of New and Renewable Energy to come forward with a comprehensive action plan for new and renewable energy development in consultation with State Governments. The meeting also decided that in rural areas grid connectivity should be explored for solar energy and the villages should have access to both conventional and non-conventional sources of energy.