India's energy needs are expected to jump four-fold in 25 years, but it faced problems ranging from depleting fuel reserves and uncertainty in policy framework, consulting firm KPMG said on Monday.
"With energy requirements expected to grow at five or six per cent per annum, there is an urgent need for India to strategically re-evaluate its supply options," Partha Bardhan, head of KPMG's energy practice in India, said.
India will also have to evolve a clear policy framework in energy sector for attracting $10 billion of private investment in the next five-six years to bridge the demand-supply gap, KPMG said.
The rethinking of India's energy policy would open up private investment opportunities. The country would need $9-10 billion of private investment in next five-six years alone to meet demand, KPMG said in its India Energy Outlook.
More clarity was also required in matters such as energy pricing, market structure, cross-border investments and imports and exports of energy products, it said.
KPMG suggested that the government should enter into partnerships with key nations to diversify energy supply base and improve long term supply.
The report said India's coal reserves could be exhausted in about 40 years. Hydroelectric and nuclear power seemed to be the obvious options, but improved frameworks were needed to attract private sector.
The report favoured deregulating the coal sector and setting up an independent body to govern investments. India's energy requirements and availability of sources also imply that it would have to build 250,000 MWe of nuclear capacity by 2050, KPMG said.
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