The scheme, launched earlier this year despite protests from the finance ministry, envisages a central grant of 90 per cent, while states are required to chip in with 10 per cent of the project cost. Earlier, the Centre had footed 40 per cent of the bill.
The presentation also sounded caution on the question of nuclear energy production even after the recent accord with the US in this area.
The government's projection of a 10 per cent share of nuclear power in all energy consumption in India is termed ambitious by the NAC. Instead, a 5-6 per cent target for nuclear energy by 2010 was more realistic, it said.
The trend in the last decade of unbundling of state electricity boards, however, does not find favour with the NAC.
"PSUs in the energy sector are important, and a multi-sectoral approach is needed to deal with the issue," the presentation said. The NAC has, however, recommended strict enforcement of anti-theft laws in the power sector.
The main problem with India's energy position, according to the NAC presentation, is an "institutional gap". For this, the panel recommends that an energy policy board be set up.
The prime minister's energy co-ordination committee and the Planning Commission are not considered adequate for the purpose since the former "deals only with energy security" and the latter suffers from "institutional overload and fatigue".
An intensified diplomatic effort to explore overseas energy sources has been encouraged.
On whether private investment is to be encouraged in the coal sector, the NAC has only said that "coal is the only PSU monopoly left in India and needs massive investment and technology". Where this investment is to come from has not been detailed.
Other recommendations of the NAC include "ethanol from sugarcane as a mandatory mix with petrol". This should be good news for sugarcane farmers, especially in Maharashtra. The need to improve public transport and mass rapid transport systems has also been underlined by the NAC.
NAC's energy policy paper