NEW DELHI, 7 August 2005 — Indian Prime Minister Manmohan Singh yesterday called for formulating a national policy to tackle the burgeoning energy shortfall in the country. “Energy security is a national priority,” Manmohan said at the opening of a meeting of the newly formed Energy Coordination Committee that he chaired.

“We have to ensure that we build up adequate energy security to insulate the economy from future shock,” he said. Toward this end, during the two-hour meeting, the premier, several senior ministers, officials and economic policy advisers focused on tapping all sources of energy, including petroleum, natural gas, biomass, solar, hydro and nuclear.

The prime minister advised the ministries to ensure that adequate investments are made in generating energy, keeping in mind the expected increase in demand arising out of higher rate of economic growth and modernization, urbanization and commercialization of economic activity.

Manmohan instructed the cabinet secretary to resolve all pending inter-ministerial issues to enable improvement in availability of gas and coal for power generation. He called on ministries of power, coal, petroleum and natural gas to ensure close monitoring of all on-going projects to make sure that energy supply from existing investments is increased to bridge the gap between demand and supply.

With specific reference to nuclear energy, the prime minister said that India must invest in the area. Hinting at the Indo-US nuclear deal signed during his US visit, Manmohan said the steps recently taken by him should end India’s global isolation and help the country increase the share of nuclear energy in the overall energy mix of the economy.

Anil Kakodkar, secretary to the Department of Atomic Energy, emphasized the need for India to import uranium and invest in uranium mining to meet requirements of nuclear power generation.

Two presentations were made at the meeting — one by Planning Commission member (energy) Kirith Parikh and another by Cabinet Secretary B.K. Chaturvedi.

While Chaturvedi’s presentation focused on short and medium term measures for increasing fuel (gas and coal) supply for power, Parikh made a presentation on integrated energy policy challenges and options.

“This was the first meeting of the committee headed by the prime minister. We reviewed the present position, what will be the position after the 10th plan, 11th plan and beyond,” Power Minister P.M. Sayeed said after the meeting.

“The meeting was about how we must have our own security of energy in the short, medium and long term,” Sayeed said.

“Acquisition of equity oil and gas and equity coal overseas will be the focus for meeting energy shortfall,” Parikh said.

By 2031-32, India will need to import about 200 million tons of oil (at present India imports 91 million tons) and 190 million standard cubic meters per day of gas (currently 21 million scmd) and 1 billion tons of coal.

An Indian delegation will head to China next week to explore ways to cooperate in acquiring foreign energy assets to meet the soaring fuel needs of their fast-growing economies.

Indian Team to Visit China

A senior Indian diplomat attached to the Oil Ministry will lead the delegation to discuss opportunities for the two countries to cooperate in obtaining oil and gas assets, the Businessline newspaper said.

The focus for cooperation by the world’s two most populous countries would include Central Asia, Africa and Latin America.

The Indian diplomat, Talmiz Ahmad, said both India and China were concerned with achieving energy security, the newspaper quoted him as saying.

“We see in this similarity of approach possibilities of bilateral cooperation,” Ahmad said.” Both countries have been rushing to acquire energy assets abroad and are often seen as rivals. But energy analysts say it might make more sense for them to cooperate to gain economies of scale and negotiating muscle.

India’s Petroleum Minister Mani Shankar Aiyar is due to visit China for five days in early November “to prepare the ground,” Ahmad added.

Media reports have quoted Oil Secretary S.C. Tripathi as saying New Delhi wants to drop its competition with China and join hands with Beijing for oil and gas acquisitions. The cooperation would include pooling of resources and joint bidding for fields, he said.