India's Oil and Gas Minister Highlights Sustainability Commitment Amid New Energy Expansion
- Muhammad Ahmad
- Nov 15, 2024
- 2 min read
Minister shares major strides in public sector performance and renewables alongside ambitious new exploration initiatives
India’s Ministry of Petroleum and Natural Gas reinforces energy security and sustainability through strategic expansion
Central Public Sector Enterprises (CPSEs) report substantial growth in net worth, profits, and contributions to the national exchequer.
Ethanol blending rises significantly, with the target of 20% blending advanced to 2025.
New reforms open up vast areas for oil and gas exploration, enabling record growth in India’s energy security.
In a recent address, the Minister for Petroleum and Natural Gas, Singh Puri, highlighted India’s balanced approach to sustainable energy development and domestic fuel production. The Minister praised the performance of India’s Central Public Sector Enterprises (CPSEs) and noted their pivotal role in strengthening India’s economy and energy sector. With the net worth of CPSEs rising by 82% to Rs 17.33 trillion in FY23 and their contributions to the national exchequer more than doubling since FY14, CPSEs are helping India meet its energy and economic goals while transitioning to sustainable practices.
The Minister’s statements underscore the government’s commitment to blending sustainability with growth in conventional energy. Alongside notable financial improvements, India has advanced its bioethanol blending target, increasing from 1.53% in 2014 to 15% in 2024, with plans to reach 20% by 2025—ahead of the initial 2030 goal. This progress marks a significant achievement for India’s renewable energy sector, with discussions underway to establish a roadmap for continued bioethanol growth post-2025.
Technical Focus
India's CPSEs are crucial in the country’s energy and economic landscape. In FY23, CPSEs contributed Rs 4.58 lakh crore to the national exchequer, up from Rs 2.20 lakh crore in FY14. The total market capitalization of 81 listed CPSEs has grown by an impressive 225%, surpassing the PSE index and the BSE Sensex. At the same time, India’s bioethanol sector has rapidly expanded, with blending reaching 15% in 2024, bolstering India's commitment to renewable energy.
The Minister also highlighted transformative reforms in the Exploration and Production (E&P). Under new initiatives, the government reduced No-Go areas in Exclusive Economic Zones (EEZs) by 99%, paving the way for 1,36,596 square kilometers for oil and gas exploration, the most extensive offering to date. “Thirteen blocks covering over 51,000 square kilometers, previously classified as ‘No-Go’ areas, have been opened up under the Open Acreage Licensing Policy (OALP),” the Minister noted. This expansion represents a major step toward ensuring India’s energy security and self-reliance.
The minister’s speech illustrates India’s nuanced approach to sustainability, showing how both green energy and expanded oil and gas production can support the nation’s energy future. Through CPSE growth, renewable energy initiatives, and expanded exploration, India aims to secure its position as a sustainable yet balanced energy development leader.