Modi might put an end to the National Energy Policy bickering

Prime Minister Narendra Modi would most likely step in to resolve an inter-ministerial bickering over NITI Aayog's proposed National Energy Policy, which intends to roll out the reforms in power sector, which have been pending for a long time now.

Several ministries, including those of Power, Coal, and New and Renewable Energy, hold stakes in this policy, but have been unable to reach common grounds on some points of the proposed policies.

"National Energy Policy is pending with PMO (prime minister's office)," an official in the know told ET. "The top office is now planning to convene a high-level meeting of all concerned ministers and secretaries to be chaired by the PM himself to suggest way forward to the policy," the official said.

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The first draft of the policy was framed by the Niti Aayog after intense consultations spreading over last one and a half year. It was made ready for seeking public comments by March, but was held back after concerned ministries found objections in certain proposals.

One such reform suggested by the policy is freeing coal, electricity and fertilisers sectors from subsidies and price controls. Once private companies can be pitched in, more power would be produced, but the ministries are not convinced.

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The policy has also suggested that the financial condition of power distribution companies (discoms) needs to be mended so that the sector can be made profitable in the future.

Once applicable, National Energy Policy will replace Integrated Energy Policy implemented under the UPA regime.

(Image source KhabarDekho)