An Energy Atmanirbharta Act

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“Viksit Bharat” and atmanirbharta are resonant national slogans. There is no minister of energy in the central government with oversight responsibility for the core components of the energy ecosystem — coal, petroleum, renewables and nuclear. But if there were one, I would suggest he take the following high-level initiatives to deliver on these objectives.First, he should ensure his cabinet colleagues agree on the interpretation of these words. That is, to have clarity and alignment on the deliverables of viksit and atmanirbhar in the context of energy.AdvertisementThe Hindi word viksit translates to “developed”, which most people distil down to economic metrics like GDP. The minister should make clear that viksit in the context of energy has a broader deliverable. It encompasses social inclusiveness and environmental protection.Atmanirbhar translates to “self-sufficiency” or “self-reliance”. The policy roadmap for achieving the former is different from that for the latter.“Self-sufficiency” is a hard metric. It means we produce what we consume. Our petroleum companies have been struggling to achieve this goal for more than half a century. The results have not been encouraging. In the mid-1970s, we imported approximately 30 per cent of our domestic crude oil requirement. Today, we import approximately 85 per cent. The reason is that whilst we know our 26 sedimentary basins contain hydrocarbons, we have had difficulty both in locating them, and even when they are located, in developing and producing them on a commercial basis.AdvertisementGiven this track record, even whilst self-sufficiency in petroleum is a powerful slogan behind which to rally, we should temper our optimism. The likelihood of producing what we consume within the timeframe of 2047 is slim.Self-sufficiency in coal is, of course, attainable as we sit atop the fifth-largest deposits in the world, but overdependence on this “dirty” and highly polluting energy source would compromise our objective of Viksit Bharat, broadly defined.“Self-reliance” on the other hand, can be interpreted more loosely. It is not about import independence but about a network of national and international relationships and assets that guarantee access to affordable, timely and “clean” energy. The one caveat is that by introducing the word “clean”, one is also introducing the imperative of securing access to the minerals and metals for the manufacture of components essential for generating and storing clean energy. Specifically, nickel, cobalt, lithium, copper and rare earths.The larger point the minister must make clear is that the policy roadmap for achieving self-sufficiency is different from that for achieving self-reliance. In the context of atmanirbharta, the country should strive for self-reliance.Second, the minister should set out the current global backdrop. Three messages should be emphasised.The world is headed towards an ecological abyss. Sadly, global summitry related to climate change has failed to deliver substantive results — the target of limiting the global temperature increase to 1.5 degree Celsius above pre-industrial levels was breached in 2024. But given that this is a crisis that does not respect national boundaries, the global community has no option but to collaborate. India should put its weight behind such international efforts, notwithstanding the views of powerful detractors like US President Donald Trump. It should do so also because it will be disproportionately impacted by global warming. The hard reality is that India does not have the luxury to develop first and clean up later.Globalisation may not be dead but it is comatose. This has led to the weaponisation of energy trade and hypocrisy. Thus, even as the US sanctions India for buying oil from Russia and accuses Indian refineries of being the “laundromat” for Russia, it purchases oil from Venezuela, whose government it does not recognise. This is because Venezuelan heavy oil suits American refineries. The irony is that the output of these refineries is mostly laundered for sale to Europe. Thus, even as the EU calls for sanctions against Russia, several of its members purchase Russian LNG. And even as they introduce the Carbon Border Adjustment Tax, they turn a Nelson’s eye to the reopening of coal mines by their members. Opportunism is the bedrock of contemporary energy policy.Third, China has emerged as a new energy power. The minerals and metal ores referred to above are produced by a few countries in Africa (Congo — cobalt ), Latin America (Peru/Chile — copper), Asia (Indonesia — nickel) and Australia (lithium) but are then processed/smelted predominantly in China. The green transition is dependent on China and this is the reason it can cock a snook at the threat of US tariffs.One constant bears reminding. Even as the contours of the energy map have changed, energy security remains a national priority. It first occupied this space five decades back when the Gulf countries embargoed oil supplies to the western world for its support of Israel in the Yom Kippur War of October 1973. It remains front and centre of every government’s policy agenda. “Energy atmanirbharta” is not just our aspiration. It is that of every country.With this definitional clarity and global backdrop, I would recommend the government take the following five high-level steps.One, back atmanirbharta with legislation and enact an “Energy Atmanirbharta Act”.Two, create a strategic stockpile of critical minerals and metals, similar to the strategic petroleum reserves.Three, invest disproportionately in owning, controlling and/or managing international energy assets incluing critical minerals and metals. Specialised expertise should be dedicated to this purpose. The weight of India Inc should be behind bids and negotiations.most readFour, increase — by a multiple — public investment in R&D and technology innovation. Public-private partnerships between government departments, academia, research laboratories and businesses have been the trigger for technological breakthroughs worldwide. This model should be replicated and institutionalised in India.And five, sort out the complexity of the regulatory environment; simplify access to factors of production (land, capital, water); assure contract sanctity; contemporise expertise (fewer oil riggers; more solar maintenance engineers ) and provide leadership.The writer is chairman, Centre for Social and Economic Progress (CSEP). Views are personal