India's Energy Sector Transformation
The transformation of India's energy sector is a crucial component of its economic growth and strategic vision. Under Prime Minister Narendra Modi's leadership, significant strides have been made to bolster energy security, affordability, and sustainability.
Economic and Energy Growth
- India has surpassed Japan to become the world's fourth largest economy, with a GDP of $4.3 trillion in 2025.
- The country is the third largest energy and oil consumer, fourth-largest refiner, and fourth-largest LNG importer globally.
- Energy demand in India is expected to grow two and a half times by 2047, contributing to 25% of incremental global demand.
Energy Strategy
- Four-pronged approach: Diversification of sources, domestic production expansion, transition to renewables, and maintaining affordability.
- Exploration acreage has doubled to 16%, with a target of covering one million square kilometers by 2030.
- Key reforms include a 99% reduction in 'No-Go' areas and streamlined licensing.
Policy Reforms and Technological Advancements
- New gas pricing mechanisms link prices to the Indian crude basket, offering a 20% premium for new wells.
- Technological advancements like the National Seismic Programme and continental shelf mapping enhance exploration confidence.
- Collaborations with global majors such as ONGC's partnership with bp aim to boost output significantly.
Infrastructure and City Gas Expansion
- India's downstream infrastructure includes 24,000 km of product pipelines and nearly 96,000 retail outlets.
- The city gas network has expanded to 307 geographic areas, with PNG connections growing from 25 lakh to 1.5 crore.
Green Initiatives and Sustainable Alternatives
- Ethanol Blending: Increased from 1.5% in 2013 to 19.7% in 2025, saving ₹1.26 lakh crore in foreign exchange.
- SATAT initiative: Over 100 compressed biogas (CBG) plants commissioned, aiming for a 5% CBG blending mandate by 2028.
- Green Hydrogen: 8.62 lakh tonnes of production targeted, with significant projects by IOCL and other PSUs.
Strategic Reforms and PM Gati Shakti
- Oilfields (Regulation and Development) Amendment Act 2024 allows hybrid leases for renewables alongside hydrocarbons.
- PM Gati Shakti: Digital mapping of over one lakh assets and pipelines ensures project visibility and synergy.
Affordability and Stability
- Despite a 58% rise in global LPG prices, subsidies have allowed Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries to pay ₹553 per cylinder.
- Strategic excise cuts have kept fuel prices stable, insulating citizens from regional volatility.
Overall, India's energy sector transformation underlines its commitment to becoming a self-reliant and globally competitive energy powerhouse, aligned with its broader economic and strategic objectives.
