Energy sector needs structural reforms: Mukherjee

NEW DELHI - Structural reforms are needed to make the energy sector vibrant and investor-friendly, Finance Minister Pranab Mukherjee said Wednesday.

“While the government is adopting a number of fiscal incentives to attract investments, including in the vital energy sector, there are structural reforms required in the energy industry, to utilize those incentives, Mukherjee said at the ninth Petrotech International Oil and Gas conference here.

Expressing confidence that India would soon turn to double-digit growth path, Mukherjee said contribution of the energy sector was vital for achieving high economic growth.

If we can put into effect some important structural policy measures, there is no reason why India cannot achieve double-digit gross domestic product (GDP) growth.

Indian economy grew 8.8 percent in the first quarter of fiscal 2010-11.

The finance minister emphasised the need for greater coordination between energy- producing and -consuming countries.

“Recent history shows us that the geo-politics of oil and gas is quite complicated. It is quite natural that nations would place their individual developmental agenda ahead of collective global needs. Notwithstanding the inherent challenges in achieving a trade-off in this vital issue, there are various areas where possible cooperation will resolve a number of bottlenecks in energy business across nations, Mukherjee said.

“If this Petrotech-2010 can achieve even a part of the possibilities in this regard, it may translate into huge savings, which can light up lives in a number of energy-starved developing nations, he added.