The Cabinet on Friday approved an Integrated Energy Policy that envisions a road-map for sustainable growth with energy security over a reasonable period of time, Home Minister P Chidambaram.
"It has been decided to set up a monitoring committee under the chairmanship of the Cabinet Secretary for reviewing the progress of implementation of the policy," he told reporters after a meeting of the Cabinet chaired by Prime Minister Manmohan singh.
The policy seeks to make energy markets more competitive, have market-determined energy pricing and resource allocation, transparent and targeted subsidy disbursal and improved efficiency.
"India needs to sustain an economic growth of at least nine per cent over the next 25 years... It is necessary to evolve an integrated energy policy that provides a coherent framework of policy covering different energy sources in a consistent manner," he said.
The policy, prepared by the Planning Commission, aims at optimal exploitation of domestic energy resources and exploring and acquiring energy assets abroad to attain energy security for the country.
It advocates appropriate energy pricing to promote investment in augmenting supplies.