Plan panel for oil regulator

In the midst of a number of disputes surfacing in the petroleum sector, the Planning Commission is all set to recommend an oil regulator, besides a defined pricing mechanism for sensitive petro products, as part of the Integrated Energy Policy.

The expert group, headed by Planning Commission Member Kirit Parikh, is understood to have recommended sweeping changes in the current fuel pricing mechanism, restructuring subsidy on renewable energy sources, setting upof a coal regulatory body, long-term coal contracts for the power sector and budgetary support for R&D in the energy sector.

The committee is expected to submit its recommendations to Planning Commission Deputy Chairman Montek Singh Ahluwalia tomorrow, where assent will also be sought on constituting an "appellate tribunal" on fuel besides setting up a regulatory body for the petroleum sector.

So far, Directorate General of Hydrocarbons, a part of the petroleum ministry, is functioning as a sectoral regulator. On renewable energy sources, the committee is likely to recommend restructuring subsidy in a way that its benefits accrue at the level of delivery.

"There is a need for introducing efficiency benefit mechanisms including incentive-based schemes to promote renewable energy," sources said.