Editorial 2: A strategy fuelled by vision, powered by energy

Context

India’s energy sector can be summed up in three simple words — confidence, self-reliance, and smart planning for the future.

Introduction

India recently overtook Japan to become the world’s fourth largest economy. Since 2014, under Prime Minister Narendra Modi’s leadership, India’s GDP has more than doubled to $4.3 trillion in 2025, driven by a decade-long strategy focused on reforms, resilience, and self-reliance. India is now the fastest-growing major economy and an emerging strategic force globally. The energy sector has undergone a significant structural transformation during the first year of Modi 3.0, building on a decade of foundational change. With a 6.7% growth rate in the last quarter, India’s growth trajectory is unmatched by any other country in the near future.

India’s Energy Position

• India is the 3rd largest energy and oil consumer globally.
• It is the 4th largest oil refiner and 4th largest LNG importer.
• Energy demand is expected to grow 2.5 times by 2047.
• India will account for 25% of the increase in global energy demand.

Energy Security = Development Security

• India’s energy strategy tackles the three challenges of:
  • Availability
  • Affordability
  • Sustainability
• Approach includes:
  1. Diversifying energy sources and suppliers
  2. Increasing domestic production
  3. Shifting to renewable energy
  4. Ensuring affordability

Upstream Oil and Gas Sector Growth

• Exploration acreage doubled from 8% (2021) to 16% (2025).
• Government plans to expand exploration area to 1 million sq km by 2030.
• Goal to unlock 42 billion tonnes of oil and oil-equivalent gas.
• Reforms include:
  • ‘No-Go’ areas cut by 99%
  • Simplified licensing (Open Acreage Licensing Policy - OALP)
  • Pricing incentives for new gas wells

Gas Pricing and Contracts

• New gas pricing ties prices to 10% of Indian crude basket plus a 20% premium for new wells.
• This has improved gas availability for city gas networks and industries.
• Revenue-sharing contracts allow shared infrastructure among exploration companies to reduce costs and speed production.

Technology and Exploration Advances

• Initiatives include:
  • National Seismic Programme
  • Mission Anveshan
  • Airborne gravity gradiometry (AGG)
  • Continental shelf mapping
• These efforts improve exploration confidence, especially in frontier basins like Andamans, Mahanadi, and Cauvery.

Recent Discoveries & Collaborations

• Important new fields: Suryamani, Vajramani (west coast); Utkal, Konark (east coast deep waters).
• These add 75 million tonnes of oil equivalent and 2,700 million cubic meters of gas to reserves.
• A data center at University of Houston helps foreign investors access India’s exploration data.

Downstream Infrastructure Expansion

• India operates:
  • 24,000 km of product pipelines
  • Nearly 96,000 retail fuel outlets
  • Strong strategic reserves and LPG storage
• Over 67 million people visit petrol pumps daily, showing large-scale, efficient fuel distribution.

City Gas Network Growth

• City gas network expanded from 55 areas (2014) to 307 areas (2025).
• Piped Natural Gas (PNG) connections increased from 25 lakh to 1.5 crore.
• Over 7,500 CNG stations operational nationwide.
• Unified pipeline tariffs and network expansion ensure affordable access even in remote states.

The focus of the green strategy

1. Biofuels: Core of India’s Green Strategy

• Ethanol blending in petrol increased from 1.5% (2013) to 19.7% (2025).
• Blending quantity rose from 38 crore litres to 484 crore litres.
• Benefits achieved:
  • ₹1.26 lakh crore saved in foreign exchange
  • 643 lakh MT reduction in carbon emissions
  • Payments of ₹1.79 lakh crore to distillers and ₹1 lakh crore to farmers
• Ethanol Feedstock Diversification: From molasses to maize, enhancing resilience of ethanol production.

2. SATAT Initiative: Boosting Compressed Biogas (CBG)

• Over 100 CBG plants commissioned under SATAT (Sustainable Alternative Towards Affordable Transportation)
• Target: 5% CBG blending by 2028
• Support provided:
  • Biomass procurement aid
  • Pipeline connectivity for circular energy transition

3. Green Hydrogen: India’s Next Frontier

• PSUs leading the shift to clean hydrogen energy.

4. Natural Gas Network & Reforms

• Pipeline length:
  • 25,000 km now, target: 33,000 km by 2030
• Reforms introduced:
  • Strategic pricing changes
  • Gas included in ‘No Cut’ category for domestic & transport use
• Gas production grew from 28.7 BCM (2020–21) to 36.4 BCM (2023–24)

Policy Reforms: Making Upstream Competitive

• Oilfields Act Amendment (2024) enabled hybrid leases:
  • Allow renewables with hydrocarbons
• Discovered Small Fields (DSFs) under simplified contracts:
  • Lower compliance burden
  • Unlocking marginal fields across basins

Digital Infrastructure: PM Gati Shakti Integration

• 1+ lakh energy assets and pipelines digitally mapped
• Aligned with National Master Plan for real-time coordination
• Projects like Indo-Nepal Pipeline and Samruddhi Utility Corridor optimised
• Achieved ₹169 crore+ in cost savings via route planning

Conclusion

Affordability remains central to India’s energy policy. Despite a 58% rise in global LPG prices, PMUY beneficiariespay just ₹553 per cylinder, supported by targeted subsidies and compensation to oil companies. Fuel prices have remained stable through excise cuts, protecting citizens from the volatility seen in neighbouring countries. After eleven years of PM Modi’s leadership, India’s energy sector reflects confidence, self-reliance, and strategic foresight. Energy today is not merely a commodity but a foundation of sovereignty, security, and sustainable growth.