India, Japan sign pact on energy conservation

02 July 2007

Mumbai: India and Japan have signed an agreement to cooperate in energy conservation at the second round of an energy dialogue between the two countries in New Delhi.

The Energy and Resources Institute (TERI) of India and the Institute of Energy Economics of Japan (IEEJ) signed the memorandum of understanding (MoU) in the presence of Japanese economy, trade and industry minister Akira Amari and Montek Singh Ahluwalia, deputy chairman of the planning commission.

The agreement provides for Japanese industrial aid to India in return for the latter implementing energy conservation policies in fifteen identified sectors, the two sides said in a joint statement.

"We have agreed that on one hand, India will make an effort to increase efficiency in energy intensive industries and Japan will provide support in various ways, including human resources development," Amari said after signing the pact.

Amari said the long-term vision of Japan''s efforts were to arrive at a system wherein energy cooperation could spur economic development.

"Countries that make efforts to address the global environmental issue should not have to do that at the cost of economic development. It is important for us to create a scheme in which a flexible approach can be taken that will reflect the circumstances in each country and that will enable further economic growth in addition to improving the environment. I believe we have been able to take the first step in that direction," he said.