Non-Renewable Energy Policies Explained

The government has implemented several policies to address the energy needs of the country. These policies aim to boost domestic production, ensure sustainable mining practices, and promote the use of alternative fuels like biofuels. Let’s delve into the key features of these policies and understand their significance.

Energy Policy Landscape in India: A Comprehensive Overview

Hydrocarbon Exploration and Licencing Policy (HELP)

• The Hydrocarbon Exploration and Licencing Policy (HELP) is designed to enhance domestic oil and gas production. 
• Adopted in 2016, the Hydrocarbon Exploration and Licensing Policy (HELP) is a policy by the Government of India that replaced the New Exploration Licensing Policy (NELP). 
• Objective: HELP aims to attract investment and cutting-edge technology in the hydrocarbon sector, promoting ease of doing business through a revenue-sharing model and marketing and pricing freedom.

• Key Components

• • • Uniform Licence: It offers a uniform licencing system for the exploration and production of all forms of hydrocarbons, including crude oil, natural gas, coal bed methane, and shale gas. 

• Open Acreage Policy: Allows explorers to study and bid for any block based on their competitive advantage.

• • • Revenue Sharing Model: Replaces the profit-sharing contract from NELP, promoting cost efficiency. 
      • Contractors pay the government a share of revenue (net of royalty).

• Marketing and Pricing Freedom: Contractors can sell crude oil in the domestic market through a transparent bidding process.

National Mineral Policy 2019

Minerals are essential raw materials for core economic sectors. The exploration, extraction, and management of minerals are aligned with national economic development strategies.

• The National Mineral Policy focuses on the sustainable development of the mining sector, including minerals and fossil fuels. 
• It emphasises the need for more effective regulation, technological advancements, and environmental sustainability in mining activities. 
• The policy also seeks to ensure that mineral resources are used optimally for the country’s economic development while minimising adverse environmental and social impacts.

Features of National Mineral Policy 2019

• Domestic Industry and Import Reduction: Focuses on promoting domestic industry, reducing import dependency, and supporting the Make in India initiative.
• Fair Allocation: Ensures equitable distribution of mineral wealth through fair and transparent resource allocation.
• Sustainable Mining: Aims for environmentally sustainable mining with stakeholder participation, benefit-sharing for mining-affected areas, and maintaining stakeholder trust.
• Regulatory Environment: Promotes ease of doing business with simpler, transparent, and timely mining clearances.

National Policy on Biofuels, 2018 [UPSC 2020]

It promotes the use of biofuels as an alternative to fossil fuels in the transportation sector, aiming to reduce dependence on crude oil imports, enhance energy security, and mitigate greenhouse gas emissions.

Features of National Policy on Biofuels 2018

Blend Targets by 2030: Aim for 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel.

• Focus on Advanced Biofuels: Introduce viability gap funding of Rs. 5000 crore over 6 years for 2G ethanol Bio refineries.
  • Offer additional tax incentives and higher purchase prices compared to 1G biofuels.
• Biofuel Categorization: Divide Biofuels into Basic (1G) and Advanced (2G) categories.
  • Includes Second Generation (2G) ethanol, drop-in fuels, and algae-based Third Generation (3G) Biofuels.
• Expanded Raw Material Scope: Encourage the use of intermediate materials like B-Molasses and sugarcane juice for ethanol production.
  • Explore damaged and surplus food grains for ethanol procurement.
• National Biomass Repository: Create a national database of biomass resources across the country.
• Promotion of Biodiesel: Support biodiesel production from non-edible oilseeds, used cooking oil, and short gestation crops.
  • Develop supply chain mechanisms for biodiesel production.
• Research and Development: Focus on research, development, and demonstration of biofuel feedstock production and conversion technologies.
• Establishment of Coordination: Form National Biofuel Coordination Committee (NBCC) under the Ministry of Petroleum & Natural Gas.
  • Create a Working Group on Biofuels to oversee implementation.

Conclusion

These energy policies play a vital role in shaping India’s energy landscape. They focus on enhancing domestic production, promoting sustainable practices, and reducing dependency on fossil fuels. 

• With a concerted effort towards implementation, these policies pave the way for a more sustainable and energy-efficient future for India.

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