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a convenient way to envisage energy use, and the impact of this use on primaryresources and the environment. Between the primary source and the ultimate end uselie a number of steps in which the primary source is converted into an energy ‘carrier’or is stored for use at a later time. There are only three primary sources of energy –fossil fuels, nuclear energy and renewable energy – and only three energy carriers ofsignificance – refined petroleum products, natural gas and electricity. 11The following can be listed as the necessary steps to tackle the energy crisis at handamplified by emission concerns:• Conservation;• Coal or gas to liquid;• Biofuels;• Offshore energy resources;• Nuclear power;• Large-scale hydro power;• Infrastructure development; and• Renewable energy resources.The Integrated Energy Policy (IEP) for India prepared by an Expert Committee of thePlanning Commission makes the following observations and recommendations on coal:• Half of India’s commercial energy consumption is from coal, and 78 per cent ofdomestic coal production is dedicated to power generation;• Because of price decontrol, the coal sector has become competitive;• The continuing shortages should be made up through stepping up domesticproduction and imports, as imported coal is more cost-competitive than importedgas;• Domestic coal production should be stepped up by allotting coal blocks to publicsector undertakings and other captive users;• Coal blocks vested with Coal India Ltd. in which production cannot be started by2016-17 should be offered by 2011-12 to other developers for production;• All coal-bearing areas should be subjected to comprehensive regional and detaileddrilling;• In situ coal gasification should be attempted for deposits at non-extractable depths;• Extracting coal-bed methane should be attempted before and during mining; and• The private sector should be involved in mining.IEP affirms that coal will continue to be central to power generation in foreseeablefuture in India. To boost energy R&D, the IEP makes the following recommendations:• Creation of a National Energy Fund (NEF) by levying a cess of 0.1 per cent of turnoveron all companies dealing with primary and secondary energy, if the company’sturnover exceeds Rs 1 billion;• Establishing technology missions for coal and renewable technologies; and11Hydrogen, often billed erroneously in the popular press as an energy source of the future,is just a potential energy carrier and must be “manufactured” using one of the three primaryenergy sources.37