India's PM wants comprehensive review of energy policies

Prime Minister Dr. Manmohan Singh may implement a major revamp of the India’s energy policies.

“Energy is a difficult area where our policy needs a comprehensive review. We are energy deficient and import dependence is going up. It is vital for our energy security that we increase domestic production and also increase energy efficiency. Rational energy pricing is therefore critical. Our energy prices are out of line with world prices. The recent increase in diesel prices is an important step in the right direction,” said PM Singh.

He made this observation while speaking at the Full Planning Commission meeting that was convened to consider the draft Twelfth Five Year Plan.

The PM added that the most important area for immediate action is to speed up the pace of implementation of infrastructure projects.

"This is crucial for removing supply bottlenecks which constrain growth in other sectors. It will also boost investor sentiment to raise the overall rate of investment,” he noted.

He prompted the infrastructure ministries to set ambitious targets for their sectors over the Twelfth Plan, and emphasized that the country needs close to a trillion dollars of investment in infrastructure.