Energy policy calls for national R&D fund

The framing of the integrated energy policy is nearing completion and it will be submitted to Prime Minister Manmohan Singh by the end of this month.

Its major recommendations include setting up of a national energy fund, with an initial corpus of Rs 1,000 crore, for research and development in the sector.

An expert committee, headed by Planning Commission member Kirit Parikh, has recommended setting up of an independent board to govern the fund, with representation from the department of science and technology, the Planning Commission and the ministries of coal, power and petroleum.

The policy also said that firms might be encouraged to enhance their research and development (R&D) expenditure through tax incentives.

"The total expenditure on research and development in 2004-05 was Rs 870 crore for atomic energy and Rs 70 crore for the ministries of power, coal and non-conventional energy sources. There should be much more spending than this on R&D. This effort can be better financed through a government allocation," government sources said.

It will work in the following manner. Individuals, academic institutions and consulting firms will compete for this fund.

The fund will support all stages of R&D, from basic research to diffusion with appropriate policies, resources and institutions.

"For the medium-term goals of technology development based on R&D vision and priorities, there should be open competition for the technology development fund," the sources said.

The policy also talks about setting up a virtual network of energy research institutions, research labs and private companies to assist in pooling of resources and exploiting synergies through joint research projects.

"The fund will help in research and analysis, for the energy policy to outline technology road maps," the sources added.

It should support energy policy modelling activities in institutions on a long-term basis," the sources added.