India's Energy Sector: Paving the Way for Global Innovation and Expansion

India's petroleum and energy sector is embarking on a transformative journey aimed at reshaping the global energy landscape, fueled by innovative policies and robust investments. Minister Hardeep Singh Puri highlights India's ambitious strides in refining capacity, green energy, and biofuel blending, positioning the nation as a future refining powerhouse.

India's petroleum and energy sector is on the cusp of a monumental shift, poised to significantly influence the global landscape, asserted Hardeep Singh Puri, Minister of Petroleum and Natural Gas. During the inaugural Energy Technology Meet in Hyderabad, Minister Puri detailed India's progress, crediting it to visionary policy frameworks, rapid technological innovation, and sustained investments.

In a release from the Ministry of Petroleum & Natural Gas, Puri noted that although the global energy market is expanding at a sluggish pace, India is emerging as a pivotal growth engine, expected to account for nearly 30-33 per cent of the global energy demand increase in the coming decades. India's refining capacity, which is currently about 258 MMTPA, aims to soar to approximately 310 MMTPA by 2030, eventually reaching 400-450 MMTPA.

The Minister also spotlighted India's accomplishments in biofuel blending, noting a swift move from a 5 per cent target in 2006 to achieving 10 per cent ethanol blending ahead of schedule in 2022. The Government has brought forward its 20 per cent blending goal to 2025-26. Puri emphasized the role of effective policies and support systems in these advances, highlighting that India's refineries are globally integrated and poised for substantial export growth.

Highlighting the sector's economic significance, the Minister conveyed that the refining sector contributes a significant portion of India's revenue, with both public and private players showcasing robust financial performance. Domestic petroleum consumption has steadily increased, driven by buoyant economic growth and rising per capita income. Puri noted the potential in petrochemicals, indicating that further refinery expansions will integrate petrochemical complexes to bolster efficiency and competitiveness.

The Minister underscored the pivotal role of innovation and indigenisation, revealing that India has achieved nearly 80 per cent import substitution across the energy value chain. While critical components like catalysts are still imported, a balanced approach focusing on efficiency rather than complete self-reliance is advocated. Initiatives like the PLI scheme and the establishment of a National Centre for Catalyst Research are set to amplify R&D in energy technologies.

On the green energy front, Minister Puri celebrated the strides in green hydrogen, pointing to recent tenders that have slashed its price significantly, bringing commercial viability nearer. He stressed that green hydrogen, natural gas, and biofuels are central to India's energy transition strategy. Puri expressed confidence in the Global Biofuels Alliance to drive international biofuel trade. He reiterated India's dual focus on sustaining traditional fuels while aggressively expanding renewables.

Minister Puri reminisced about India's rich refining history, from the establishment of the first refinery in Digboi to today's expansive facilities. Post-2014 reforms and strategic investments have enkindled a new era of growth, with key projects like Barmer and Andhra Refineries exemplifying sectoral momentum. Over 100 operational biogas plants, alongside 70 more anticipated, testify to India's commitment to a sustainable energy future.

As India strides towards becoming a USD 10 trillion economy, Puri concluded that the energy sector is well-positioned to meet domestic needs while scaling global heights. He foresees India potentially rising to the world's second-largest refining force by 2035, driven by a young, energetic population, increasing energy demands, and a supportive policy landscape.

(With inputs from agencies.)