India’s Energy Transition

India recently surpassed Japan to become the world’s fourth-largest economy, with a GDP of $4.3 trillion in 2025 which is driven by significant structural reforms in the energy sector. These efforts have prioritized energy security, green transition, and global competitiveness, especially during the latest phase of governance.

India’s Energy Transition: A Decade of Reform, Self-Reliance, and Strategic Depth

• Securing India’s Energy Base: Upstream Reforms and Discoveries
  • Expansion of Exploration Acreage: India’s oil and gas exploration acreage has doubled from 8% in 2021 to 16% in 2025, aiming to reach one million sq. km. by 2030. This is part of a strategy to unlock 42 billion tonnes of hydrocarbon resources using Open Acreage Licensing Policy (OALP) and reduction of ‘No-Go’ areas by 99%.
  • Technological & Policy Synergy: Initiatives like the National Seismic Programme, Mission Anveshan, and AGG surveys have expanded geophysical datasets, improving exploration confidence. These are complemented by new gas pricing policies (linked to 10% of Indian crude basket), 20% premium for new wells, and infrastructure sharing under revenue-sharing contracts.
  • Notable Hydrocarbon Discoveries: Over 25 new hydrocarbon discoveries by ONGC and Oil India in four years—such as Suryamani and Vajramani (west coast), and Utkal and Konark (east coast)—have added 75 MMtoe of oil and 2,700 MMSCM of gas to India's reserves.
• Strengthening Infrastructure and Access: Midstream and Downstream Progress
  • Pipeline and Retail Expansion: India now operates 24,000 km of product pipelines and nearly 96,000 retail fuel outlets. The city gas network has grown from 55 GAs in 2014 to 307 in 2025, with PNG connections up six-fold and over 7,500 CNG stations operational.
  • Gas Distribution and Tariff Reforms: The natural gas grid has expanded to 25,000 km (target: 33,000 km by 2030), with unified tariffs ensuring equitable access across distant states. Natural gas production rose from 28.7 BCM (2020–21) to 36.4 BCM (2023–24).
  • Digital Integration via PM Gati Shakti: Over 1 lakh petroleum assets and pipelines have been digitally mapped under the National Master Plan, enabling real-time visibility and inter-ministerial synergy. Route optimisation in key projects saved over ?169 crore.
• The Green Turnaround: Biofuels, Hydrogen, and Consumer-Centric Reforms
  • Ethanol and Bio-CNG Push: Ethanol blending rose from 1.5% (2013) to 19.7% (2025), saving ?1.26 lakh crore in forex and reducing 643 lakh MT of CO?. SATAT has commissioned 100+ CBG plants, targeting 5% blending by 2028, with strong support for biomass logistics.
  • Green Hydrogen Deployment:62 lakh tonnes of green hydrogen production and 3,000 MW of electrolyser tenders have been awarded. Major PSUs (IOCL, BPCL, HPCL, NRL) are leading projects, including a 10 KTPA tender awarded to L&T at Panipat.
  • Affordability and Legislative Reforms: Despite a 58% surge in global LPG prices, PMUY beneficiaries pay just ?553/cylinder via targeted subsidies. The Oilfields (Regulation and Development) Amendment Act, 2024 enables hybrid leases for hydrocarbons and renewables, easing compliance in DSF fields.

Practice Question:

Q. "India’s energy transformation in the last decade has redefined its economic sovereignty and geopolitical agency. Critically examine how recent upstream and green energy reforms have aligned with the country’s developmental and strategic goals."