Shri Sushilkumar Shinde addresses India Australia energy and Mineral forum at Perth in Australia

Union Power Minister Shri Sushilkumar Shinde has said that Australia can play a major role in the energy sector of India which is growing at rapid pace with huge opportunities for investments and technology. Speaking at the 1st Australia-India Energy and Minerals Forum in Perth, Australia,he said that the two countries can work together in the areas of development of the use of Brown Coal (Lignite), energy efficiency, efficiency improvements of coal based power plants, hydro power development, power generation technology research and development of smart Grid in India. Shri Shinde indicated cooperation with Australia in developing Gas based power plants especially in western India since Australia has huge reserves of Gas.

Addressing a distinguished gathering of policy makers, business leaders and other stakeholders in the energy and mineral sector, the Minister observed that Indian companies are interested in procurement of coal and liquefied natural gas (LNG) from Australia. In the area of exploration, he said, companies are beginning to invest in each other's country and expressed hope that these investments would grow further.

Indian companies have invested in coal mining, copper mining, oil and gas exploration and entered into a partnership agreement with a uranium exploration company also. The five action plans that were signed in November 2008 with Ministries of Power, Coal, Petroleum & Natural Gas, Mines, New & Renewable Energy are the buildings blocks to build on and to take forward the bilateral engagement in the energy sector.

Sharing with the audience a paranomic view of the Indian economy in general and of the power sector in particular, Shri Shinde observed that India during the global downturn managed to achieve one of the highest growth rates in the world. He said that in spite of all odds the Indian economy exhibited significant resilience in 2009-10 and closed the year with a respectable growth rate of 7.4%. India's capacity to withstand the global shock better than many other emerging market economies was assisted largely by the sound macro-economic and financial sector policy environment that had been put in place in the post reform period by careful assessment of the opportunities and risks associated with reforms.

The Indian power sector has come a long way from a mere 1362 MW generation capacity at the time of our independence in 1947 to almost one hundred and sixty thousand MW today. India now has the fifth largest electricity in the world and the world's third largest transmission and distribution network. However, the demand from increased manufacturing activities, a growing population and the rising energy needs of a rapidly growing consumer base has led to a situation where the supply of energy falls short of the demand.

Shri Shinde said that the gigantic task of providing power for all can be successful only when the efforts of Government are strongly supported and complemented by the private sector. Recognizing the need for an overall and comprehensive legal architecture and a policy framework conducive to larger and more sustained investment in the power sector, he said, the Government of India has taken numerous steps to reform the sector.

The Minister observed that Investor confidence has returned to the sector which is amply borne out by the fact that all projects of the 11the Five Year Plan have achieved financial closure. He said that success of Ultra Mega Power Projects, which are of 4000 MW each and involve investments to the tune of US$ 4 billion, has renewed the faith of the private investors in Indian power sector. 4 projects have already been completed bidding for, fifth is under process and sixth is ready for bidding. Eight more projects are being planned, Shri Shinde added.

The Minister also highlighted a low carbon growth strategy for the Indian Power Sector which includes elements such as Super Critical Technology in Thermal Plants, the rapid induction of Clean Coal Technologies and a sharper focus on renewables. He observed that international majors like Mitsubishi, Toshiba, Alstom and Ansaldo have already started the process of partnering with Indian manufacturers to set up Super Critical Manufacturing facilities in India. Mentioning the recently launched Jawahar Lal Nehru National Solar Mission for the creation of a capacity of over 20 thousand MW based on Solar Energy by the year 2020, Shri Shinde said that steps are being taken to provide incentives for the rapid deployment of Wind Energy throughout the country.

Referring National Action Plan on Climate Change, Shri Shinde said that the Ministry of Power is deeply involved with the National Mission on Enhanced Energy Efficiency, one of the eight missions under the Plan. He said a strategy for implementing this mission through a market transformation approach has been drawn up which includes programmes such as Energy Saving Certificates, Mandatory Standards and Labeling and fiscal incentives to facilitate adoption of energy efficiency. The Minister said that the Mission will be launched within the next few months.

Shri Shinde also pointed out that India has expressed the intent to be a founding member of a Global Carbon capture and storage initiative undertaken by Australia and is keen to participate in R&D activities by deputing our scientists/engineers to the CCS demonstration projects outside India. The MOU with Australia will be finalised very soon, he said.