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Abstract: For India, sustainable strategy means one that is economically, environmentally and socially sustainable. This calls for rapid economic growth to deal with poverty and human development. However, the relatively meagre energy resources of the country pose a huge challenge. At the same time concern for climate change has raised the bar on the use of the one energy resource that India has in some abundance, namely coal. India''s strategy for sustainable development has to explore all options of reducing energy needs, enhancing efficiency of use of conventional energy resources and develop new and renewable sources. The paper identifies various technical options, their potential roles and alternative policy measures to realize them in a cost effective manner. Even for the same objectives different policy instruments are available and how one chooses a particular instrument is often critical for the success. Self-implementing incentive compatible policy that does not create vested interests that would get entrenched should be preferred. [Copyright &y& Elsevier]

Abstract: Energy policy has to have a long-term perspective. To formulate it one needs to know the contours of energy requirements and options. Different approaches have been followed in literature, each with their own problems. A top down econometric approach provides little guidance on policies, while a bottom up approval requires too much knowledge and too many assumptions. Using top-down econometric approach for aggregate overall benchmarking and a detailed activity analysis model, Integrated Energy System Model, for a few large sectors, provides a unique combination for easing the difficulties of policy formulation. The model is described in this paper. Eleven alternate scenarios are built, designed to map out extreme points of feasible options. Results show that even after employing all domestic energy resource to their full potential, there will be a continued rise of fossil fuel use, continued importance of coal, and continued rise of import dependence. Energy efficiency emerges as a major option with a potential to reduce energy requirement by as much as 17%. Scenario results point towards pushing for development of alternative sources. [Copyright &y& Elsevier]