Progress has been slow in several areas where the Planning Commission has made recommendations under the Integrated Energy Policy. In a recent review, it was noted that no significant movement in the process of amendment of Coal Mines Nationalization Act, 1973 had been made. According to the Plan panel, amendment of this Act is of paramount importance for private sector participation in coal production and energy security. In the first four years of the just-concluded 11th Plan, coal production increased at an average rate of 5.1 per cent against the target of 9.5 per cent per annum.

Further, a market price regime is yet to be introduced for coal pricing and there is no agreement yet between the coal and power sector utilities for shifting to gross calorific value based pricing system.

Among other areas, the Planning Commission noted that the pace of reduction of aggregate technical and commercial losses had been slow. The revision of power tariff from the discoms was also not happening as frequently as required. The Commission is of the view that this may pose a serious threat to the financial viability of the discoms and sound financial growth of the entire power sector. Also, the intra-state open access is yet to be made operational.

The Planning Commission observed that the retail selling price of diesel, kerosene PDS and domestic LPG continued to be regulated by the government and involved huge subsidy. The issue of de-regularisation of prices was still under the EGoM’s consideration.