Time is right to revisit government's energy policy: Suresh Prabhu

With significant shifts in the global energy market, Railway Minister Suresh Prabhu is in agreement that this is the right time to revisit the government's energy policy.

Speaking at the 13th Petro India, organised by Observer Research Foundation and the Indian Energy Forum in Delhi, Prabhu, a former Union Power Minister, said "It is interesting and exciting time. Probably the right time to revisit our energy policy."

"It is a challenge to draw down a new energy policy, considering the changes in the global energy market," he added.

He said while the global crude oil prices are below USD 50 per barrel today, it may also lead to reduction in the prices of gas and then coal.

"But I am not sure how long the trend will continue," he added.

Prabhu, however, suggested that while the oil prices are falling, one should also factor in how this would affect the renewable energy which was becoming more and more reasonable when the oil prices were going up even above USD 120 per barrel.

The minister said while he agreed with the need to revisit the subsidy part in the oil prices, one need to study how it should be done in the case of renewable.

He requested experts at the Petro India to come up with recommendations, may be within two weeks, which will help him to cut down energy cost in the railways.

"I will be very happy if I can cut down energy cost by 20-25 percent in the coming budget. Give me some ideas," he said.

Welcoming the minister, ORF Director Sunjoy Joshi pointed out that something fundamental is changing in the world market and India, with more than 50 percent import, cannot be isolated from the global movement.

He said following the sharp fall in the oil prices, a tectonic shift is taking place in the global wealth also - point two percent in terms of global GDP, with the oil importing countries becoming richer and producers losing wealth.

Joshi said it is the right time to think of disinvestment in the energy and other sectors to free them from state controls. Saying former PPP models were not at all genuine, he also stressed on the need to usher in real PPP models which will operate free of state's commands and controls.

Earlier, Oil and Natural Gas Minister Dharmendra Pradhan said the Government is working out a new energy policy which will be transparent, investment friendly and also provide energy at affordable prices to the consumer.

The conference was also addressed by Power Secretary P.K. Sinha and many top officials of public and private companies and experts.