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The recent ratification by the Government of India of the Integrated Energy Policy (IEP) is a positive move towards addressing India's energy security concerns, according to the CII. The implementation of IEP comes at a most opportune time, when international oil prices are low and suppliers are keen to ship large quantity of hydrocarbons to India.

'Probably this is the best time in recent years to build-up our strategic reserves, augment commercial inventories, sign-up long term supply contracts and acquire overseas hydrocarbon assets; taking advantage of the current price low, before speculation drives-up the prices again' according to  Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII).

India has to develop in an energy constrained world and has to compete for global energy resources with developed countries as well as with many other emerging economies. In order to succeed in the endgame of winning international energy assets, India needs to engage energy-rich countries much more proactively and back its energy diplomacy completely by its foreign policy. The recent decision of setting-up of the Group of Ministers (GoM) under the chairmanship of the External Affairs Minister, which involves all central Energy Ministers, Deputy Chairman of the Planning Commission and Finance Minister is an extremely crucial step in this direction. The decision making authority of the GoM will ensure that India's energy diplomacy & foreign policy are aligned to each other and would also help in curtailing the delay in decision making.

India's energy security requires concerted efforts on the domestic front as well as on its overseas ventures. Increasing the transparency, predictability and stability of energy markets; improving the investment environment in the energy rector; enhancing energy efficiency and energy saving; diversifying the energy mix; enhanced exploration of domestic hydrocarbon reserves; accelerating the pace of renewable energy and nuclear energy deployment; securing critical energy infrastructure; building strategic oil reserves; reducing energy poverty; and addressing climate change and sustainable development - are important domestic measures for India; as identified by the CII's internal research on Energy Security.

Today, most of India's major geopolitical relationships involve an energy dimension. India's international energy strategies incorporate: acquiring upstream assets; pursuing trans-national pipeline projects; securing oil navigation sea-routes; expanding bilateral supply contracts; accessing new technologies; and securing foreign investments. Successful implementation of these strategies would require close co-operation with not only energy rich countries but also with many energy importing economies.

“India's ascent on international energy scene would require reshaping of the global energy space. In the short term, there could be additional pressure on the global supply sources. But, in the medium and long term, India can contribute significantly to the global energy security, while adopting strategies for its own energy security,: according to V. Raghuraman, Principal Advisor and Head - Energy, Environment and Natural Resources, Confederation of Indian Industry (CII). Co-operation in strategic oil reserves; security of sea lanes and pipelines; collaborative R&D to develop future energy technologies; co-ordination in energy imports and co-operation in acquisition of overseas energy assets; are some of the examples, where India could contribute significantly.

India's proximity and historical linkages with some of the world's most hydrocarbon rich regions such as the Middle East, Africa and Central Asia places India in a unique position, which can be effectively harnessed. Forging stronger ties with African and Central Asian countries and consolidating traditional relationships with the Middle East are vital steps for India's energy security.

The paradigm of India's Energy Security requires engagement with diverse geographical regions and political regimes. The country's diplomatic policy has to be tuned to its energy aspirations and India has to maintain a diplomatic balance on various conflict issues in a manner that its energy interests are not jeopardized.  In today's globalised world, a shift from an inward looking energy policy to a package of effective domestic and overseas energy strategies is crucial for ensuring India's energy security.

Source: CII

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