India Energy Week: PM Modi pitches for global investments in energy sector

Modi said that India’s strategy for the energy sector is centred around four major verticals—increase in domestic exploration and production of oil and gas, diversification of energy supplies, expansion of alternative sources of energy like biofuels, ethanol, compressed biogas, and solar energy, and achieving decarbonisation through electric vehicles and green hydrogen. The PM said that India is working at a rapid pace in all these areas.

The PM highlighted numerous examples of growth and capacity ramp-up across the energy value chain. He said that while India is already the world’s fourth largest refiner with an installed capacity of 250 million tonnes per annum (MTPA), refining companies are working rapidly to increase the capacity to 450 MTPA along with upgrading their units and increasing petrochemical production.

Modi told the audience, which included global energy experts, executives of international and Indian companies, and energy ministers of some countries, that similar efforts to enhance capacity are being undertaken for natural gas pipelines and liquefied natural gas handling capacity. India aims to increase the share of natural gas in the country’s primary energy mix to 15 per cent by 2030 from a little over 6 per cent at present.

The PM said that fossil fuel exploration, second-generation ethanol, and green hydrogen are among the segments in which India will have investment opportunities worth thousands of crores of rupees.

Highlighting domestic exploration of fossil fuels, Modi said that exploration in inaccessible areas was required. “Based on investor sentiment, no-go areas in the country are reduced. 10 lakh square km of area is rid of no-go restrictions,” he said.

At the event, Modi also launched a few initiatives, including the sale of 20 per cent ethanol-blended petrol on a pilot basis by public sector oil marketing companies. India has already achieved 10 per cent ethanol blending in petrol and has advanced the deadline to achieve 20 per cent blending by five years to 2025-26.

Named E20, ethanol-blended petrol will be introduced in 15 cities first and will be extended to different parts of the country soon, PM Modi said. Similarly, the twin cooktop Indian solar cooker, also launched at the event, will be supplied to 3 crore families in the next two to three years, PM Modi said.

Petrol blended with ethanol is considered relatively less polluting than petrol. Higher levels of ethanol blending with petrol, apart from being less damaging to the environment, are also likely to help India reduce crude oil imports. India is the world’s third-largest consumer of crude oil and depends on imports to meet over 85 per cent of its needs. Costly oil imports result in heavy foreign exchange outflows for the country.

Prime Minister Modi also said that India was investing heavily in green hydrogen. Under the National Green Hydrogen Mission, around Rs 1 lakh crore will be invested, he said. Similarly, incentives will be offered to companies setting up battery manufacturing units for electric vehicles, he added.