India's Energy Security: A Call for Systemic Reforms Amid Global Volatility
The recent global energy market shocks exposed India's vulnerability to external events and highlighted the need for robust energy security measures. The escalation of geopolitical conflicts in West Asia led to increased energy price volatility, physical supply constraints, and a depreciating rupee, affecting Indian consumers.
The government and industry responded swiftly by implementing policies to prioritize essential consumption segments. The Ministry of Petroleum and Natural Gas (MoPNG) and the Petroleum and Natural Gas Regulatory Board (PNGRB) promulgated the Natural Gas (Supply Regulation) Order under the Essential Commodities Act, 1955, ensuring uninterrupted supply to households and urban mobility.
The MoPNG and PNGRB also took steps to accelerate infrastructure development, adding nearly 1.6 million domestic piped natural gas (DPNG) connections across various geographical areas (GAs). Additionally, PNGRB waived system imbalance and disciplinary charges for City Gas Distribution (CGD) operators and implemented a levellised unified tariff to harmonize pipeline transport costs.
To ensure long-term energy security, the author proposes systemic reforms, including tax rationalization and GST integration, standardizing national Right of Way (RoW), and creating a level playing field for all fuels. The adoption of natural gas by Micro, Small, and Medium Enterprises (MSMEs) is also encouraged through consumption-linked incentives.