Energy in India under-priced, phased rationalisation is needed: PM

Tuesday, January 08, 2013
Indian Prime Minister addressing at the foundation stone laying
ceremony of Integrated Refinery Expansion project of BPCL in Kochi  
Kochi: Indian Prime Minister Manmohan Singh on Monday said  that the energy prices in the country are much below international prices and in order to bring them in line with global prices, government must undertake a phased rationalisation of energy prices and have to curb subsidies to achieve the goal of rapid and inclusive development.

He was speaking at the foundation stone laying ceremony of Integrated Refinery Expansion Project of BPCL in Kochi, India.  

“Energy remains underpriced in our country, with coal, petroleum products and natural gas prices well below international prices. To meet our target of rapid, inclusive and sustainable development we must undertake a phased rationalization of energy prices to bring them in line with global prices,” Mr. Singh said in his speech at the function.

He said the central and state governments must work together to create awareness among the public on the need for 'curbing' energy subsidies.

The prime minister noted that to achieve the target of rapid growth, India needs adequate supplies of energy at affordable prices.

“To achieve our target of rapid industrial and economic growth we need adequate supplies of energy at affordable prices. Oil and gas will continue to meet a very large part of our energy requirements for many years to come,” he added.

Praising his government initiatives Mr. Singh said the government of India remains committed to encouraging companies to undertake domestic exploration for oil and gas.

The prime minister is here to inaugurate the 11th Pravasi Bharatiya Diwas on Tuesday.
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