FORM CABINET LEVEL BODY FOR ENERGY : MCKINSEY
International consultant McKinsey & Co has suggested a creation of a Cabinet
level body to oversee policy approval and implementation in the energy sector. "
Establishment of Cabinet Committee on energy (CCE) comprising ministries of
energy, railways, finance and external affairs and Prime Minister's office would
be required for policy approval and to oversee implementation issues," McKinsey
said in a presentation made to Planning Commission recently.
The consultants also suggested moving all power subsidies explicitly to central
and state budgets. It further recommended development of a national
rehabilitation policy to facilitate accelerated development of hydro and coal
sectors.
Projections for alternative fuel options reveal that emission levels would rise
with increasing usage of coal white draft plan strategy prepared by commission
would increase country's important dependence on oil, it said, adding that
import dependence was also expected to shoot up from 67 per cent to 78 percent.
McKinsey also estimates that India would become the largest incremental LNG
market in the world by 2020 with a total consumption of 45 billion cu m. (BCM).
Benefit of larger market will accrue to customers in terms of lower gas prices,
it said, adding that new sources of gas would come mostly from Asia-Pacific
region, namely Indonesia and Australia.
The consultant also predicts a declining trend for gas prices vis-à-vis coal. On
the crucial issue of economic viability of nuclear power generation, McKinsey
estimates cost per unit of nuclear power to be much cheaper than most other
renewable energy sources including solar and bio mass energy even after
accounting for emission costs.
Courtesy Economic times 2.2.2002
