Prime Minister Narendra Modi addresses at the inauguration of India Energy Week, in South Goa, Tuesday, Feb. 6, 2024.
PTI Photo
New Delhi: India will invest $67 billion (around Rs 5.5 lakh crore) in the next five to six years to boost the share of natural gas in the country’s primary energy mix to 15% from the current 6%, Prime Minister Narendra Modi said on Tuesday.
Speaking at the second edition of India Energy Week in Goa, Modi said a significant portion of the budgeted capital expenditure for the financial year 2024-25 would go to the energy sector.
In the interim budget, the government has pegged capital expenditure (capex) for 2024-25 at Rs 11.11 lakh crore (nearly $134 billion), which is 11.1% higher than the current financial year.
“Given that all infrastructural developments in the country, including railways, roadways, waterways, airways, and housing, require energy, India is actively expanding its energy capacity to meet these growing demands,” Modi said.
Reiterating India’s commitment to achieve net zero emissions by 2070, Modi said, “We are committed to further improving our energy mix by focusing on the development of environmentally sensitive energy sources.”
As per information given by the Ministry of Petroleum and Natural Gas to Parliament in December 2023, the government has taken various steps to increase the share of natural gas in the energy mix to 15% by 2030.
The measures include expansion of the national gas grid, city gas distribution network and liquefied natural gas (LNG) terminals. India’s natural gas production increased by 20% year-on-year to 34.45 billion cubic meters in 2022-23.
Modi said India’s oil refining capacity will be increased to 450 million metric tonnes per annum (MMTPA) by 2030 from the current 254 MMTPA.
Modi invited global energy majors to invest in India.
“Leaders from the oil, gas, and energy sectors worldwide are keen to invest in India. Several such leaders are present here with us today. We extend a warm welcome to each one of you,” Modi said.
He also held a roundtable with global oil & gas CEOs and experts.
Speaking at the event, Union Minister of Petroleum & Natural Gas Hardeep Singh Puri said there is growing interest from global investors in India’s energy sector.
“India, despite having no large oil reserves of its own, has managed to successfully develop a large oil industry by strategic planning and investments in the refining sector. Last fiscal year, crude oil was India's biggest import item, while petroleum products made up the largest share of exports,” Puri said.