PM Modi Announces India's $67 Billion Investment Plan for Gas Sector Development

Prime Minister Narendra Modi announced on Tuesday that India will allocate $67 billion to the gas sector in the next 5-6 years as part of an extensive effort to enhance energy infrastructure.

Addressing the second edition of the India Energy Week (IEW) in Betul, South Goa, Modi highlighted India's appeal to global investors in the energy sector. He emphasized the goal of increasing the share of natural gas in the primary energy mix from the current 6 percent to 15 percent.

"India is investing an unprecedented amount of funds into India. Therefore, those involved in the global energy sector today want to invest in India in energy," Modi stated.

At last year's IEW, Modi reiterated India's commitment to green energy while acknowledging the necessity of investments in the traditional oil and gas sector.

The Interim Budget proposed a capital expenditure of Rs. 11 trillion, a significant portion of which will be directed towards energy sector investments. Modi highlighted India's rapid economic growth, with the International Monetary Fund predicting continued growth momentum, positioning India as the third-largest economy globally.

Modi also emphasized India's ambition to become a leading producer and exporter of hydrogen and highlighted the nation's significant refining capacity, aiming to expand it from the current 255 million metric tonnes per annum (MMTPA) to 450 MMTPA by 2030.

India's annual oil consumption stands at 19 million barrels, projected to double to 38 million barrels by 2045. Modi highlighted the progress in ethanol blending in petrol, which increased from 1.5 percent a decade ago to over 12 percent in 2023, resulting in the avoidance of 42 million metric tons of carbon emissions.

Furthermore, Modi noted the launch of E20 fuel, featuring 20 percent ethanol blending in gasoline, which is now available at 9,000 outlets nationwide. E20 is expected to yield approximately Rs. 50,000 crore in savings for the government as crude oil imports decrease.

BS