Skip to main content

Draft national energy policy proposes aligning energy prices with international rates

Draft national energy policy proposes aligning energy prices with international rates
A draft national energy policy proposing aligning energy prices with international rates will be put up for the approval of the Cabinet.If approved, energy prices across sectors would become market-driven and subsides would be limited to identified beneficiaries via direct benefit transfer, much on the lines of the LPG subsidy
In June, government think tank Niti Aayog released a draft National Energy Policy (NEP), on which it had been working since 2015.  Prime Minister Narendra Modi had chaired interministerial consultations on the policy after the coal ministry expressed reservations over market-driven prices that would pose a threat to the monopoly and margins of Coal India.
The policy will help India integrate with the global energy world without compromising on the energy needs of the poorest of the poor, who will continue to get subsidy on all forms of energy directly into their bank accounts through direct , a senior government official told ET.
"The outward-looking policy is against any kind of subsidies at the production and distribution levels as it distorts the system.Instead, it has strongly vouched for DBT as the technological platform to transfer subsidies to the poor after the success of LPG," the official said, speaking on the condition of anonymity.In its draft policy released in June, Niti Aayog said India's energy demand was likely to soar around three times by 2040, leading to increase in overall primary energy imports.
It had also made a case for a single regulator to govern India's energy market to make 'India's economy energy-ready' by 2040. The NEP will replace the Integrated Energy Policy of the UPA regime and lay the road map for government push towards clean energy and reducing fuel import
According to the draft NEP, the period 2017-2040 is expected to witness a quantum leap in the uptake of renewable energy, drastic reduction in energy intensity, doubling of per-capita energy consumption and tripling of per-capita electricity consumption."It is expected that implementation of the NEP would cater to wider consumer choices and provide a level playing field, competitive economy and energy security to India by 2040," the draft policy had said.
The Economioc Times, New Delhi, 27th November 2017

Comments

Popular posts from this blog

RBI minutes show MPC members flagged upside risks to inflation

RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

Differential Tax Levy under GST: Food Firms May De-Register Trademarks

Differential Tax Levy under GST:Food Firms May De-Register Trademarks The government’s decision to charge an enhanced tax rate on trademark food brands is leading several rice, wheat and cereal manufacturers to consider de-registering their product trademarks. Irked by the June 28 central government notification fixing a 5 per cent goods and services tax (GST) rate on food items packaged in unit containers and bearing registered brand names, the industry has made several representations to the government to reconsider the differential tax levy, which these players say is creating an unlevel playing field within these highly-competitive and low-margin industries. Sources say that the move has affected the packaged rice industry the hardest and allowed the un-registered market leaders, India Gate and Daawat, to gain advantage as compared to other registered brands such as Kohinoor and Lal Qilla. Smaller players are even more worried with this enhanced rate of tax (against the otherwise …