National Electricity Policy

Among other goals, this policy stressed the need for the promotion of non-conventional energy sources.

The policy noted the need to reduce the capital cost of projects based on non-conventional and renewable sources of energy; stressed the importance of promoting competition among renewables projects; provided for state electricity regulatory commissions to increase progressively the share of electricity that must be purchased from non-conventional resources, and further provided that the purchase of such electricity should be conducted via a competitive bidding process; suggests tax neutrality across energy sources; states that 'maximum emphasis' would be put on the development of hydro-power. Use of thermal power could be made cleaner by using low-ash coal, improving lignite mining, and through increased use of natural gas and nuclear power. It also calls for the use of the most efficient technologies and more funding for R&D; emphasises the need for conservation and demand-side management including a national awareness campaign.