While this possibility and, more importantly, the US-India nuclear deal are currently stuck, the prospects of supply and availability of all forms of energy sources in this country appear grim. The

Integrated Energy Policy document projects coal demand in 2031 of around 1000 metric tonnes of oil equivalent (MTOE) and oil demand of almost 500 MTOE in the coal dominant scenario. These quantities appear totally beyond reach. TERI’s projections from a much more energy efficient scenario would bring down coal demand in 2031 to a little over 750 MTOE, with oil demand close to 500 MTOE.

With oil prices currently in excess of $130 per barrel and the prospect of further increases in the future, India must restructure its transport sector, which is the major consumer of petroleum products. In the case of coal the major demand for this fuel comes from the power sector. Here again India would have to expand its import of coal substantially, with likely constraints on indigenous production and transportation. Soft options in the pricing of energy and distortionary subsidies would only lead to rapidly increasing demand. Energy pricing must reflect international realities, which the government and the opposition parties must accept if we want to create an energy future that is sustainable and secure.

It is against the outlook of growing problems in the supply of both coal and oil that nuclear energy acquires great relevance in this country. The nuclear option certainly carries problems and even significant risks, but given the limited choices that India has, and the example of countries that have managed their nuclear programmes efficiently and safely, the nuclear option will prove to be an extremely important element of India’s energy policy. In this context, it is sad that even those parties in the opposition that philosophically support the Indo-US nuclear deal are not prepared to join hands with the government in pushing through this extremely important initiative that can help secure the supply of nuclear fuel and advanced technology. Even as the door is closing on the possible finalisation of the Indo-US nuclear accord, there is an urgent need for all political parties to suppress their short-term political interests in favour of India’s long-term national interest. Not to do so could in the long run lead to very severe constraints in fuel supply options, which would act as a drag on the growth of the Indian economy. And with escalating fossil fuel prices, nuclear power becomes economically more attractive.

... contd.