Prime Minister Modi Announces $67 Billion Boost for India's Energy Sector Over the Next 5-6 Years

In a significant development for India's burgeoning energy sector, Prime Minister Narendra Modi has announced a substantial investment of $67 billion over the next five to six years. This capital injection is part of a concerted effort to scale up the country’s energy infrastructure and meet the growing demands of its rapidly expanding economy.

Invitation to Global Investors

Addressing the attendees at the India Energy Week's second edition, Prime Minister Modi extended an open invitation to investors around the globe to take part in this phase of growth and transformation. With the Indian economy powering ahead with a growth rate surpassing 7.5%, the nation is charting a course to becoming the world's third-largest economy.

Expansion of Refining Capacity

The energy sector's expansion includes a significant increase in refining capabilities, with aims to elevate the current capacity from 254 million metric tonnes per annum (MMTPA) to 450 MMTPA by the year 2030.

Emphasizing the uniqueness of this investment, Modi remarked on the unprecedented financial commitment to energy development, something India has not seen before.

Doubling of Primary Energy Demand

Modi highlighted predictions that India's primary energy demand would double by 2045, reflecting the nation's developing economic stature. As the third-largest consumer of crude oil and LPG, along with being the fourth-largest importer of LNG, the stakes for a robust and responsive energy sector are high.

Amidst global energy challenges, India has managed to reduce petrol and diesel prices over the last two years, an outcome of the country's strategic energy management.

Progress in Domestic Energy Production

Recent government reforms have bolstered domestic natural gas production, and there is an objective to increase gas’s proportion within India's energy mix to 15% by 2030.

Discussing the impactful move towards biofuels, the prime minister noted that ethanol blending in petrol surged from 1.5% to 12% over the past decade and is projected to hit 20% by 2025.

Commitment to Sustainable Growth

In line with global climate goals, Prime Minister Modi reaffirmed India's commitment to achieving net zero emissions by 2070, emphasizing that the nation currently accounts for only 4% of the world’s total emissions. Additionally, plans are underway to connect surplus electricity from a newly announced solar rooftop scheme—targeting one crore homes—to the national grid.

investment, energy, infrastructure