India’s Energy Transformation: Self-Reliance, Resilience, Strategic Growth
India has taken a significant leap toward becoming a global energy powerhouse. Under a clear, visionary leadership model, the country is now the world’s third-largest energy and oil consumer. The shift toward energy self-sufficiency is backed by strategic reforms, infrastructure development, and a focus on renewable and sustainable energy sources.
1. India’s Position in the Global Energy Market
- India has overtaken Japan to become the world’s third-largest economy by GDP (PPP).
- The country is now the third-largest energy consumer and the fourth-largest refiner globally.
- India is also the fourth-largest LNG importer, reflecting its vital position in the global energy supply chain.
2. Four-Pillar Energy Strategy
India’s energy approach is structured around four primary pillars:
- Diversification of supply sources
- Domestic production boost
- Transition to renewable energy
- Affordability and accessibility for all
This integrated model ensures energy security while aligning with sustainable development goals.
3. Accelerated Domestic Exploration
- Domestic exploration acreage has more than doubled from 80,000 to over 160,000 sq km between 2021 and 2025.
- India plans to unlock 42 billion tonnes of oil and oil-equivalent gas reserves.
- Strategic policies like Open Acreage Licensing Policy (OALP) and reduction of ‘No-Go’ areas by 99% have streamlined the licensing process.
4. Transparent Pricing and Policy Reform
- Linking gas prices to 10% of imported crude basket with a 20% incentive for new wells has boosted investment interest.
- Transparent auctioning and new revenue-sharing models have simplified contracts and encouraged private sector involvement.
5. Advances in Exploration Technology
- India is using cutting-edge tools such as:
- Airborne gravity gradiometer (AGG) surveys
- National Seismic Programme (NSP)
- Advanced 3D and 2D seismic imaging
- Focus is placed on unexplored frontier basins like Andaman, Mahanadi, and Cauvery.
6. India’s Expanding Gas Infrastructure
- India aims to expand its gas pipeline network from 23,000 km to 35,000 km.
- The “One Nation, One Grid” policy enhances cross-country gas distribution.
- Over 6.7 million PNG connections and 12 million LPG refills are served under the Unified Tariff framework.
7. National Oil and Gas Discoveries
- Significant discoveries in the Mumbai Offshore, Cambay, and Krishna-Godavari (KG) Basin.
- New production from Mumbai High is projected to boost oil output by 4% and gas by 8%.
8. No-Cut Category for Transport
- Natural gas has been classified as a “No-Cut” category for transport and essential sectors, ensuring steady supply during shortages.
- Production of natural gas has risen from 28.7 BCM in 2020-21 to 36.4 BCM in 2023-24.
9. Green Hydrogen and Renewables Push
- India’s first green hydrogen plant in Assam is now operational.
- Over 3,000 MW of electrolyser tenders have been issued.
- PSUs like HPCL, IOCL, BPCL, and GAIL are leading the way with hydrogen pilot projects.
10. Biofuel and Ethanol Strategy
- Ethanol blending rose from 1.5% in 2014 to 10.7% in 2023.
- India has already saved Rs 82,000 crore in foreign exchange by blending 540 crore litres of ethanol.
- The country now uses 2G bioethanol plants to convert agricultural waste into fuel.
11. CBG (Compressed Bio-Gas) Production
- Over 50 compressed bio-gas plants are currently operational.
- CBG contributes to the waste-to-energy goals, promoting a circular economy.
12. PNG and LPG Growth
- PNG connections rose from 55 lakh to over 1.03 crore.
- LPG coverage has reached 98% with subsidies under the Ujjwala Yojana, providing affordable cooking fuel to over 9 crore households.
13. International Collaborations
- Strategic global partnerships in gas exploration and LNG trade.
- India’s LNG terminal capacity stands at 42 MTPA, supporting rising demand.
14. Simplified Upstream Licensing
- Policies under the Hydrocarbon Exploration and Licensing Policy (HELP) and Revenue Sharing Contracts have made upstream oil exploration more investor-friendly.
- Marginal oil fields and smaller blocks are now viable investment options with quicker returns.
15. Strategic Petroleum Reserves
- India has significantly increased its strategic crude oil reserves, reducing dependency on volatile global prices.
- This move ensures supply security during international price shocks or geopolitical instability.
