We have had a very useful discussion on the state of the economy and the pending issues in energy policy. I thank my Cabinet colleagues for their remarks. The Planning Commission will take these into account in finalising the Mid Term Appraisal.

I am happy to note that Minister Members have broadly endorsed the assessment of the current economic situation presented by the Planning Commission. The economic picture at present can be characterized by a combination of strengths built up over several years, the lingering effect of the global slowdown and the temporary effect of the drought in the current year, particularly on agricultural output and food inflation. We must build on the strengths and tackle the new challenges. We have to pay careful attention to the management of the food economy and the overall macro economy.

This meeting was not meant to focus in detail on the drought but I agree with the general approach that while we must do everything necessary to tackle the drought, we should not be over-pessimistic. We are in a very strong position to manage the consequences of the drought. Our food stocks in particular are very high. The government is giving focussed attention to all aspects of drought management including both relief measures and efforts to protect the Kharif crop as much as possible and to ensure a normal Rabi season. The NREG gives us a very important instrument for supporting incomes of those most in need. We must make all efforts to converge NREG and other agricultural and rural schemes to minimise the impact of drought in 2009-10.

The underlying strength of the economy, which has been brought out in the paper by the Planning Commission and endorsed in the discussion, will stand us in good stead as we seek to return to our high growth target over the next two years.

The discussion has highlighted some important policy issues. It has drawn attention to the need to revive investment, especially in infrastructure and containing fiscal deficit within limits of prudence. It has also established the challenge of resource mobilisation for the last two years of the 11th Plan. We will have to give careful thought to the various suggestions made for raising additional resources and try to ensure that the momentum of planned development is maintained in the next two years and that our flagship programmes are adequately funded.

The discussion has emphasised that while expanding resources is important, achieving efficiency in use of resources is equally important. I hope the Planning Commission will use the Mid Term Appraisal to give concrete suggestions for improving both the design of the system and the efficiency of implementation.

One consequence of scarce resources is that we should fully explore the scope for Private Public Partnership. This has been attempted in the infrastructure sectors where we have had some success, although progress has been less than what we would have wanted. We are taking steps to streamline the process so that PPP projects can move faster.

The integrated energy policy was approved by the Cabinet in December last year and presents a very large policy agenda. It is clear from the discussion that there has been some progress in important areas, but the pending policy agenda is very large. Pursuit of these issues is the responsibility of different ministries. There was a suggestion to convene a meeting of the NDC to discuss issues related to climate change and energy management.

I direct the Planning Commission to pursue these issues with the Ministries concerned and present a detailed assessment of progress on these areas at the time of the Mid Term Appraisal so that the record of achievement is much better. Difficult areas should be brought back to my attention.

A rational energy policy, with appropriate policies for renewable and non-conventional energy sources, is also important for climate change. We need to dovetail our strategy for energy with our national action plan for climate change.

I have asked the Deputy Chairman to arrange meetings of the full Planning Commission more frequently so that we get an opportunity to discuss these issues in a more holistic manner.

Thank you.