Environmental issues stare us in the face. We have justified reason for refusing to accept mandatory limits on GHG emissions. But we cannot ignore the fact that India would be amongst the worst impacted countries if global warming did alter the weather patterns and raise sea levels. We must ask, therefore, whether given their weakened financial position, the PSU oil companies will willy-nilly push air pollution off their priority agenda. The companies will, of course, say no but a subtle shift may well occur. The larger question and one which the FM should not sidestep, is what will be the implications of such a shift? What would be the financial consequences of managing worsening air pollution?

As an aside, I must admit to concerns about the environmental consequences of the Nano. This is not because I doubt the product. In fact, I have great admiration for Ratan Tata’s achievement. I believe the Nano is a testament of India’s entrepreneurial and technical talent. And that it offers tangible hope to the desires of our aspirant middle class who look to trading up from a cycle to a four-wheeler through perhaps the intermediary of the scooter. I also believe the Tatas when they claim the car will meet the required emission norms. My concern flows from the picture of a people’s car crawling along our congested roads with (more than likely) adulterated fuel in its tanks.

Energy security is our other major concern. We know that India will remain dependent on imported hydrocarbons for the foreseeable future. We also know that the sine qua non of sustainable development is an energy system based on non fossil fuels. Our challenge is to manage the short to medium term exposure to the vicissitudes of the international petroleum market and at the same time develop this alternative system. The problem is that our oil companies whose involvement is crucial may now be paying no more than lip service to this future. They simply do not have the resources to engage in relevant R&D; nor to experiment with the alternative infrastructures that would be required to commercialise new technologies.

... contd.