India's strategic energy policy framework

The Draft National Energy Policy outlines bold initiatives that can transform the sector

The Draft National Energy Policy brought out by NITI Aayog strives to set a new agenda for India’s energy sector and provide a medium to long-term policy direction for stakeholders, in line with new developments in this arena. The integrated policy that holistically examines the critical issues in achieving the objectives of energy affordability, security, sustainability and growth is indeed a welcome step.

A number of proposals in the draft policy have the potential of transforming energy markets in India. Removing distortions between competitive energy prices and subsidies through direct subsidy transfers, operating coal mining and power generation at arm’s