India Insulates Itself from Global Energy Turmoil through Diversification and Domestic Focus
India's energy sector has demonstrated remarkable resilience in the face of global turmoil, thanks to careful planning and diversification efforts. According to Union Minister of Petroleum and Natural Gas Hardeep Singh Puri, the country has successfully shielded its citizens from external shocks by absorbing the shock at the fiscal system level.
The recent period saw a 20-30 percent disruption in global supply chains due to military conflicts and closure of the Strait of Hormuz. However, India was able to maintain steady supplies to domestic consumers while also ensuring adequate allocation of natural gas. The government accelerated the structural shift to PNG and CNG, maintaining 100% allocation throughout.
India's dependence on imports is often highlighted, but the country now produces 60% of its LPG requirements and about 50% of its natural gas needs domestically. The country also stands among the world's largest refiners and exporters of petroleum products, shipping over 60 million tonnes per year to global markets.
The government has continued to support the energy sector through various initiatives, including the Ujjwala scheme for LPG connections and the GOBARdhan scheme for biogas production. The country's refining capacity is also witnessing a rise, with current capacity standing at around 267 million metric tonnes per annum (mmtpa) and moving towards 300-310 mmtpa.
Furthermore, India has opened up previously restricted sedimentary basins to exploration, with several bids emerging from the area. The cabinet has also approved Samudra Manthan, a major scheme for deepwater drilling, with an outlay of Rs 840 billion and support for up to 50% of drilling costs.