New Delhi: Prime Minister Manmohan Singh today (Dec 14, 2004) said that the Government would adopt a multi-faceted approach on pricing in all forms of energy including auto fuel, LPG, kerosene and electricity aimed at efficient and rational use of energy resources.

"Whatever subsidies we offer, must be done in a transparent manner," Singh said launching Energy Conservation Campaign in New Delhi.

Regretting that in the past, private investment in the field of energy, particularly power, was encouraged without proper pricing and distribution policy, he said that a "multi-faceted" approach on pricing in all forms of energy was the need of the hour.

Singh said that the large amount of power theft was being sought to be covered under the garb of transmission and distribution losses as also free power to the rural sector and warned that free power was resulting in a dangerous depletion of ground water.

Seeking a national debate on economic utilisation of energy and rational pricing policy, the Prime Minister said that without this it would not be possible to address the issue of energy conservation, a must for achieving the goal of electrification of the entire nation in the next five years.

He said that that 56 per cent of the rural household did not have access to electricity and in case of some States the figure was as high as up to 90 per cent.

Underscoring the importance of improving the quality of electricity to help increase the quantity, Singh cautioned against "blindly aping" the West and said that instead the developed countries should bring down their consumption to our level.

Underlining the need for rationalisation of policies in the sector, Singh regretted that in the last decade 'cart was being put before the horse' as private investment was being encouraged in power generation without addressing the "issues of pricing and distribution".

In this backdrop, he talked of rationalisation of subsidies and a pricing policy with in-built incentives for consumers for efficient and rational consumption of electricity.

As part of efforts to improve availability of power, Government would try to find resources in public sector, he said and impressed upon the need for massive private investment in the electricity sector.

Earlier, Singh released a commemorative stamp on Energy Conservation brought out by the Communication Ministry and gave away awards to 38 industrial undertakings including three units of Reliance and a refinery of Indian Oil Corporation for efficient use of energy resources.

Speaking on the occasion, Power Minister P M Sayeed said that as much as 615 mw of power was saved by the industrial units taking part in the energy conservation drive by the ministry and participating in the award competition during the last six years.

Power Secretary R V Shahi said 366 participants in the competition for energy conservation award had led to a saving of Rs 763 crore during 2004, up from Rs 297 crore in 2002 by 120 units.