Even as the government was mulling another round of reduction in fuel prices before the elections as international crude oil prices slip to their lowest, it is important that the Integrated Energy Policy (IEP) -which was recently ratified by the Union cabinet be implemented instead. Nobody can forget the impasse last year when international crude prices had risen to a record $130 per barrel, bankrupting the Indian oil marketing companies so much that they did not have enough cash for oil imports for two days. Given the burgeoning fiscal deficit, there is a need for garnering more revenue - a further cut in fuel price is unwarranted. It is at this time that the Integrated Energy Policy (IEP) for the country is needed. The energy policy framework was finalised by the Planning Commission and secured the approval of the Union Cabinet on new year's eve. Low international crude prices and fear of a recession may take the sheen out of the government's policy initiative but it has a big relevance in the long term. A national policy for energy management is needed to meet energy demands from different sectors of the economy. The policy has to ensure a continuous availability of primary commercial energy to the production sector as well as economically sensitive households. The policy also deems that the prices of all commercial primary energy sources that are tradable should be set at trade parity prices at the point of sale. The energy policy steps followed in the country since independence were dictated largely by an affinity to socialistic ideology that often swears by self-reliance. This brought in complacency and inefficiency in energy production and utilization. As a result, Indian consumers were made to pay one of the highest prices for energy in purchasing power parity terms. Economic liberalization and growth pushed up the demand for competitive energy supplies and services. India intensified its energy quest and diplomacy soon after the Manmohan Singh-led UPA government assumed office in 2004 and set eyes on acceleration of economic growth. Higher levels of energy consumption is an imperative for sustaining the 8-10 per cent annual growth necessary to eradicate poverty and meet its economic and human development goals. According to the Planning Commission, India needs to push up its primary energy supply by 3-4 times and electricity supply by 5-7 times of the current level of consumption for a sustained 8 per cent growth through 2031. This means expanding the annual energy generation to 800,000 mw and coal requirement level to 2,040 million tonnes. It is in this backdrop that the government sought working out an IEP report from the Planning Commission. It was finalized in August, but secured ultimate approval by year end. The policy suggestions highlight that the country pursue all available fuel options and forms of energy as well as new and emerging technologies. It should also have safeguards against future energy shocks and disruptions. One of the toughest challenges of an equitable energy policy identified by the report is providing electricity and clean fuels to all, particularly the rural populations that depend on bio-mass and cow-dung. These village fuels, though touted as cheap because the cost of gathering by women and children is not accounted for, cause serious smoke, pollution and health problems. The endeavour will also form part of poverty eradication strategy. India also needs to take advantage of its proximity and historical linkages with some of the world's most hydrocarbon rich regions such as the Middle East, Africa and Central Asia which places India in a unique position, which can be effectively harnessed towards building a long-term self reliance in energy. The prospect of large scale generation of nuclear electricity in the post India-United States Nuclear agreement scenario holds out a lot of hope. However, nuclear energy will be playing only a limited role in meeting the overall energy demands even when the scope of the Indo-US nuclear agreement is well harnessed. According to the policy report, "Even if a 20-fold increase takes place in India's nuclear power capacity by 2031-32, the contribution of nuclear energy to the country's energy-mix is at best expected to be 4 to 6.4 per cent (of the total power produced in the country)." Currently, 17 nuclear reactors produce only 4,200 mw of a total of 1,70,00 mw of power produced in the country. However, in the long run (by the year 2050) the nuclear source offers to become a potent means to long-term energy security if things go fine with India's three-stage nuclear energy development process. According to the IEP policy report, coal will remain India's most important energy source till 2031-32 and possibly beyond. India will need to take a lead in seeking clean coal technologies and, given its growing demand, new coal extraction technologies such as 'in-situ' gasification to tap its vast coal reserves that are difficult to extract economically with the conventional technologies. Coal accounts for over 50 per cent of India's commercial energy consumption and some 78 per cent of domestic coal production is dedicated to power generation. Hydro development, especially water impounding and storage schemes, are critical as India's per capita water storage is the lowest among its comparators. Creating such storages is critical to India's water security, flood control and drought management. But public resistance to large dams is a serious impediment. If India succeeds in exploiting its full hydro potential of 150,000 MW, the contribution of hydro to the energy mix would be around 5-6 per cent. The report says renewable energy is important to India. Even with a concerted push of 20-fold increase in capacity, renewables can account for around 5-7 per cent of India's energy mix by 2031-32. Solar power could be an important player for the country attaining energy independence in the long run. A number of technology missions including Solar Energy Mission are suggested to be mounted for developing near-commercial technologies. However, the policy report is silent on new issues like hydrogen fuel for transportation and biofuel routes. Dr Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and Industry (FICCI) said, "The go-ahead to the IEP would mark a new phase in India's energy development and utilization. Now the private sector could be a significant player in energy research and generation". However, he highlighted the need to introduce necessary changes in the old restrictive regulations. Private companies engaged in commercializing solar and wind energies often find themselves stone-walled by the old restrictions. Even with a changed mindset, the government is reluctant to allow private companies to enter the area of nuclear power generation. The government has, however, formed a Group of Ministers headed by the cabinet secretary to implement and monitor the policy. But many doubt whether leaving the implementation and monitoring of the Integrated Energy Policy (IEP) to the union cabinet secretary would bring in the desired speed in the process. In fact, now when the international crude prices are lowest and the producers are keen to ship big quantities to requiring countries, it is for India to cash in on the opportunity to implement the policy initiative to become self reliant in this important sector which is the backbone of any economy.