NITI Aayog's new National Energy Policy, which is in the final stages, is likely to propose an integration of all energy ministries into one, sources told CNBC-TV18.
The proposal will seek a merger of power, coal, new & renewable, petroleum & natural gas ministries, said the sources, adding that most ministries are in agreement for the merger.
The policy also moots to merge all regulators of the sector like Central Electricity Regulatory Commission (CERC), Petroleum & Natural Gas Regulatory Board (PNGRB) to have a one-stop energy regulator for all the disputes and licensing concerns.
“Time is right for the integration of the energy-related ministries as most of them are not working in synergy. The National Energy Policy will be a guide for the integrated energy ministry from the day it is approved by the Cabinet until 2030” said an official.
The focus of the government is now to bring in ease of doing business and push the 'make in India' initiative for the manufacturing sector and hence the NEP has also proposed rationalisation of subsidy, cross-subsidy, and taxation across the energy spectrum. Even though GST proposals are approved by the GST Council, the policy will bat for the same for electricity, petroleum products.
“The idea is to move away from the subsidy, cross-subsidy, and complication high taxation regime and simplify taxes for making India’s manufacturing competitive globally. The push will be not on specific targets but to make energy-intensive manufacturing cost-competitive. We need to move away from subsidy and cross-subsidy regime and focus on only providing subsidy to the needy via Direct Benefit Transfer (DBT),” said the source who wished not to be quoted.
The National Energy Policy aims to pave way for government’s announcements in the energy sector like increasing manufacturing to 25 percent, reducing oil import dependency by 10 percent by 2022, reduction of emission intensity by 33-35 percent by 2030, 175 GW renewable energy by 2022 amongst others.