Report of the Steering Committee on Energy Sector For the Tenth Five year Plan (2002-2007)

Abstract

The Steering Committee’s report for the Tenth Five-Year Plan (2002–2007), prepared under the aegis of the Planning Commission, presents a comprehensive assessment of India’s energy sector, emphasizing its pivotal role in driving socio-economic development while addressing the persistent demand–supply gap. The report highlights India’s growing import dependency—particularly on crude oil—and projects a substantial rise in primary energy demand by 2011–12, even as it anticipates efficiency gains and structural economic shifts. It proposes a revised and diversified fuel mix that prioritizes coal and lignite while moderately reducing the shares of oil and gas, alongside increased contributions from hydro and nuclear power. The Committee underscores strategic policy imperatives such as establishing a Cabinet Committee on Energy for coordinated oversight, fostering competition through private sector participation, rationalizing tariffs and subsidies to enhance fiscal discipline, and aligning regulatory frameworks with international standards. Sector-specific strategies focus on reforming the power sector to reduce transmission losses and strengthen State Electricity Boards, liberalizing coal exploration, restructuring oil and gas markets, expanding nuclear capacity, accelerating hydropower projects, and promoting renewable energy adoption at both grid and decentralized levels. Environmental sustainability is integrated as a guiding principle, advocating improved energy efficiency and emissions management. Overall, the report envisions a transformed, reliable, and market-responsive energy system capable of supporting India’s long-term economic growth, global competitiveness, and sustainable development trajectory.