A Strategy Fuelled by Vision, Powered by Energy

India’s rapid economic rise is underpinned by bold energy reforms that balance growth with sustainability. 

Rise of Indian Economy

• Growth and Reform: India is set to overtake Japan to become the world’s fourth-largest economy, with its GDP doubling to $4.3 trillion in 2025.
• Resilient Reforms: India is now the fastest-growing major economy, as result of a decade-long strategy of reforms, resilience, and self-reliance. 
  • Its 6.7% growth rate in the last quarter of 2024–25.

Reforms in the Energy Sector of India

• Status: India is the third-largest energy and oil consumer, fourth-largest refiner, and fourth-largest LNG importer globally. With demand expected to grow 2.5 times by 2047, energy security is seen as development security.
• Energy Strategy: The government’s energy strategy addresses the trilemma of availability, affordability, and sustainability through diversification of sources and suppliers, expansion of domestic production, transition to renewables and Affordability
• Expanding Oil and Gas Exploration: Exploration acreage has doubled from 8% in 2021 to 16% in 2025, targeting 1 million sq. km. by 2030. 
  • The goal is to unlock 42 billion tonnes of oil and oil-equivalent gas.
• Policy Reforms:  Key reforms include 99% reduction in ‘No-Go’ areas, streamlined licensing under the Open Acreage Licensing Policy (OALP) and pricing incentives for new gas wells (20% premium)
• New Pricing Mechanism: The revised gas pricing links rates to 10% of the Indian crude basket, making gas more affordable for city gas networks and industries.
  • Revenue-sharing contracts and shared infrastructure allow faster monetisation.
• Technological Support: Efforts like the National Seismic Programme, Mission Anveshan, airborne gravity gradiometry (AGG) surveys, and continental shelf mapping are increasing exploration confidence, especially in frontier basins.
• New Hydrocarbon Discoveries: ONGC and Oil India have made over 25 discoveries in basins such as Mumbai Offshore, Cambay, Mahanadi, and Assam.  
  • Significant finds include suryamani and vajramani (West Coast) and utkal and konark (East Coast).  Adding 75 MMtoe and 2,700 MMSCM of gas to reserves.
• International Collaborations: ONGC’s partnership with bp is set to raise output from Mumbai High by 44% (oil) and 89% (gas).  A data centre at the University of Houston now allows international access to India’s exploration data.
• Pipelines, Retail, and Storage: India now operates 24,000 km of product pipelines, 96,000 retail fuel outlets. Strengthened strategic and LPG reserves. Over 67 million people use petrol pumps daily, reflecting system scale and efficiency.
• City Gas Networks: From 55 geographic areas in 2014 to 307 in 2025, the city gas network has expanded dramatically:
  • PNG connections: from 25 lakh to 1.5 crore
    
  • CNG stations: over 7,500 operational. Unified pipeline tariffs and network expansion have ensured affordable access across distant States.

 Pillars of India’s Energy Transformation

• Ethanol: Ethanol blending in petrol has increased from 1.5% in 2013 to 19.7% in 2025, with volumes rising from 38 crore litres to 484 crore litres.
• Economic and Environmental Gains: This shift has saved ₹1.26 lakh crore in foreign exchange, reduced emissions by 643 lakh metric tonnes, and contributed ₹1.79 lakh crore to distillers and over ₹1 lakh crore to farmers.
• Multiple Feedstocks: India has diversified ethanol feedstock — from molasses to maize creating a robust and adaptive ecosystem.
• SATAT Initiative and CBG Push: The SATAT (Sustainable Alternative Towards Affordable Transportation) initiative has commissioned over 100 compressed biogas (CBG) plants, targeting a 5% CBG blending mandate by 2028.
• Enabling Circular Energy: Central support for biomass procurement and CBG-pipeline connectivity is accelerating India’s circular energy economy.
• Electrolyser Growth India has achieved 8.62 lakh tonnes of green hydrogen production and awarded 3,000 MW electrolyser tenders.

Steps taken in the Energy sector

• Role of Public Sector: IOCL awarded a 10 KTPA green hydrogen tender to Larsen & Toubro for Panipat. BPCL, HPCL, GAIL, and NRL are all leading major green hydrogen projects. NRL’s unit in Assam will be the first green hydrogen plant in Northeast India.
• Growing Pipeline Infrastructure: India’s natural gas pipeline network spans over 25,000 km, aiming for 33,000 km by 2030.
• Supply and Production Stability: Gas is now part of the ‘No Cut’ category for transport and domestic use. Production rose from 28.7 BCM (2020–21) to 36.4 BCM (2023–24), with further growth expected.
• Hybrid Energy Models Legalised: The Oilfields (Regulation and Development) Amendment Act 2024 allows hybrid leases, enabling co-development of hydrocarbons and renewables.
• Discovered Small Fields (DSF): Simplified contracts and minimal compliance are unlocking marginal fields, increasing efficiency and competitiveness.
• Real-Time Visibility: The Ministry of Petroleum and Natural Gas has digitally mapped over 1 lakh assets and pipelines through PM Gati Shakti.
• Coordination: Integration with the National Master Plan ensures real-time coordination and synergy across ministries.
• Cost Savings : Projects such as the Indo-Nepal pipeline and Samruddhi Utility Corridor have achieved ₹169 crore in savings through route optimisation.
• LPG Access: Even with global LPG prices rising by 58%, Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries pay just ₹553 per cylinder. This is made possible through targeted subsidies and compensation to oil companies.
• Shielding from Price Shocks: Fuel prices have remained stable in India owing to excise duty cuts, which have insulated the public from fuel volatility experienced in neighbouring countries.

Conclusion

After eleven years under the Prime Minister’s leadership, India’s energy narrative has transformed from one of anxiety to confidence and strategic foresight. Today, energy in India is not merely a commodity — it is a catalyst for sovereignty, security, and sustainable development.