SME Times News Bureau | 10 Jan, 2013
Rising oil import
bills due to the high prices in international markets are putting a "big
strain" on the Indian economy, Prime Minister Manmohan Singh said
Wednesday.
"Today over 80 percent of India's requirements of petroleum products is
being imported. This dependence on imports is likely to increase," Singh
said at the launch function of National Electric Mobility Mission Plan 2020.
"High international prices of oil contribute significantly to India's
import bills, to our trade deficit, and also if I may say so in the world of
rising energy prices, to inflation, thus putting a big strain on our
economy," he said.
The prime minister emphasised on the need for development of electric and
hybrid vehicles in a bid to reduce transport sector's dependence on oil.
"One of the ways in which this can be achieved is by faster adoption of
the full range of electric vehicle technologies, including hybrid vehicles.
These technologies are not only more efficient but they are also cleaner,"
he said.
Singh pointed out that the transport sector accounted for nearly 30 percent of
the world-wide consumption of energy. Of this, three-fourths come from road
vehicles.
Oil provides 95 percent of the primary energy consumed in the transport sector
worldwide.
According to the International Energy Agency, 75 percent of the projected
future increases in oil demand will be from the transport sector. "India
and China are likely to account for a major part of this increased global
demand for oil," the prime minister said.
The prime minister launched the National Mission for Electric Mobility (NMEM),
which aims at national energy security, mitigation of the adverse impact of
vehicles on the environment and growth of domestic manufacturing capabilities.
"NMEM is amongst the most significant interventions of the government that
promises to transform the automotive paradigm of the future by lessening the
dependence on fossil fuels, increasing energy efficiency of vehicles and by
providing the means to achieve ultimate objective of cleaner transportation
that is compatible with sustainable renewable energy generation,"
according to an official statement released after the launch function here.
"This intervention will also help encourage the Indian automotive industry
to shift to newer, cleaner technologies so that it builds its future
competitive advantage around environmentally sustainable products, high end
technologies, innovation and knowledge," it said.