India making unprecedented investments in energy sector, invites global majors to invest: PM Modi at India Energy Week

India aims to rapidly raise its refining capacity from around 254 million tonnes per annum (mtpa) to 450 mtpa by 2030 and increase the share of natural gas in its primary energy mix to 15 per cent from the current level of a little over 6 per cent. Billions of dollars of investments are likely in just these sectors over the next six years. According to Modi, India’s gas sector alone is likely to see investments worth around $67 billion over the next five to six years.

In the Interim Budget for 2024-25, the government hiked the capital investment outlay to by 11 per cent to over Rs 11 lakh crore. Modi said that such high infrastructure investment in sectors like roads and highways, railways, aviation, and housing will also feed into energy demand and investments.

The Prime Minister said that nearly all global oil, gas, and energy leaders want to invest in India. “Many such leaders are sitting here in front of me. We extend a warm welcome to them,” Modi said at the inaugural session of the India Energy Week, which had numerous foreign delegates in attendance.

While speaking on India’s efforts to increase energy capacity in line with demand, Modi emphasised that the country is also focussed on energy affordability. “India is a country, where despite a number of global factors, petrol and diesel prices declined over the past two years,” the Prime Minister said, adding that India is not just meeting its energy needs, but also shaping the global direction.

Due to extreme volatility in prices of crude oil and fuels in the aftermath of Russia’s invasion of Ukraine, India’s public sector oil marketing companies (OMCs) have kept prices of the two automobile fuels unchanged since early April of 2022, even as retail fuel prices in a number of countries tracked global rates. While the OMCs have kept prices unchanged, the Centre on two occasions reduced retail fuel prices by reducing Central Excise Duty.

Modi also highlighted India’s efforts in energy transition and the country’s push for a circular economy, biofuels, new and renewable energy, as well as future fuels like green hydrogen. Modi mentioned India-led initiatives like the Global Biofuels Alliance, which was launched at the New Delhi G20 Summit a few months ago, and programmes like blending ethanol with petrol, setting up of compressed biogas plants, National Green Hydrogen Mission, and rooftop solar units for homes.