A strategy fuelled by vision, powered by energy, Pg8

India has become the world’s 4th largest economy and fastest-growing major economy with 6.7% GDP growth in the last quarter.

India is now the 3rd largest energy and oil consumer, and 4th largest refiner and LNG importer.

Upstream expansion: Exploration acreage doubled from 8% (2021) to 16% (2025)

Ethanol blending increased from 1.5% (2013) to 19.7% (2025); biofuels saved ₹1.26 lakh crore in forex.

Over 25 hydrocarbon discoveries made in last 4 years

City gas coverage expanded from 55 to 307 areas; over 7,500 CNG stations operational.

Detailed Insights:

India’s energy strategy addresses the energy trilemma of availability, affordability, and sustainability through diversification, domestic expansion, renewable transition, and cost control.

Major reforms include Open Acreage Licensing Policy (OALP), reduction of No-Go areas by 99%, new pricing mechanisms, and simplified revenue-sharing contracts.

Green push includes SATAT initiative, biofuel scaling, green hydrogen production, and hybrid leases under the Oilfields (Regulation and Development) Amendment Act 2024.

Digital integration via PM Gati Shakti has streamlined project execution, saving over ₹169 crore and optimising cross-sector infrastructure planning.

India’s energy transformation is also socially inclusive—ensuring fuel accessibility through city gas expansion, stable retail prices, and targeted LPG subsidies.

Strategic collaborations with global majors (e.g., ONGC-bp) and academic partnerships signal a global investment-friendly energy environment.

Scientific/Technical Concepts Involved:

Open Acreage Licensing Policy (OALP): Enables continuous bidding for oil and gas exploration blocks. Under OALP, a bidder intending to explore hydrocarbons may apply to the Government seeking exploration of any new block which was not already covered by exploration.

Green Hydrogen: Hydrogen produced via electrolysis using renewable energy sources, key for decarbonisation.

Ethanol Blending: Mixing ethanol with petrol to reduce import dependence and emissions.

Mains Mock Question:

India’s energy strategy aims to balance economic growth with sustainability. Critically evaluate the reforms and innovations introduced in the oil and gas sector in this regard.