India Austerity Energy Security Breaking Silos Government

The PM has issued a clarion call for energy austerity. This is timely because even when the Straits of Hormuz reopen, India will continue to face elevated energy prices and supply uncertainty. The PM has issued a clarion call for energy austerity. This is timely because even when the Straits of Hormuz reopen, India will continue to face elevated energy prices and supply uncertainty. Worldwide, stocks of crude oil and petroleum products have been depleted. These will have to be replenished. Eight refineries in the Persian Gulf and Qatar’s Ras Laffan LNG terminal have been damaged. This will keep the petroleum market tight. In addition, while a “no war-no peace” scenario (like the relationship between North Korea and South Korea, or the current ties between India and Pakistan) may continue indefinitely, India cannot discount the possibility of miscalculation, misadventure, and/or misunderstanding triggering a violent rupture. The PM’s call does, however, raise several questions. Who, other than the PM, has the executive mandate within our administrative and institutional set-up to put flesh on his directive? Who will define the targets to be achieved? Who will highlight the cross-cutting linkages within the energy sector (petroleum, coal, renewables, power, nuclear) and between energy and other economic sectors (fertiliser, food, water, environment, semiconductors, heavy industry) to ensure a “whole-of-system” approach to the management, monitoring, and evaluation of energy policy and security? The answer is no one. There is no individual or institution with executive authority over energy. Some years ago, I proposed that the government revert to the status quo ante of 1992 and establish a Ministry of Energy, with the Minister ranked alongside the Ministers of Defence, Home, Finance, and External Affairs as one of the senior-most members of the cabinet. I suggested that the current cabinet-level ministries of petroleum, coal, renewables, and power be subsumed under this ministry. This suggestion had no takers, possibly because it was politically infeasible. With 23 political parties in the coalition government, all of whom had to be accommodated, a proposal that reduced the size of the cabinet was never likely to gain traction. Today, this is no longer a constraint. The proposal could therefore be brought back to the table. I would suggest that NITI Aayog be directed to lead a discussion on the subject. That said, I recognise that administrative and institutional change is never easy. Powerful vested interests must be navigated. A second-best option would, therefore, be for the PM to create a “Department of Energy Resources and Security” (DERS) within the Prime Minister’s Office, headed by a cabinet-ranked official and staffed by a multidisciplinary cadre of skilled specialists. The purpose would be to supplement, not duplicate or dilute, the responsibilities of the existing energy-related ministries. They would continue “as is”. There would be no change to the present administrative structure. Specifically, I would recommend that DERS be vested with executive responsibility for the following five functions. First, to provide a platform for a “whole-of-system” integrated approach to energy policy planning, implementation, monitoring, and