India to invest $67 bn in energy sector in next 5-6 years: PM Modi

Prime Minister Narendra Modi on Tuesday unveiled the government's vision for transforming the energy landscape in India. While speaking at the inaugural ceremony of India Energy Week (IEW), PM Modi says that India's energy sector will see substantial investments of over the next five years, totaling almost $67 billion. He says that the country's demand for oil is projected to double by 2045.

“Noting that India Energy Week 2024 is taking place at a significant time period when India’s GDP rate crossed 7.5 percent in the first six months of the financial year, the Prime Minister said that the growth rate is higher than the global growth estimate making India the fastest growing economy in the world,” PM says.

"In primary energy mix, we are pushing to increase natural gas to 15 per cent from 6 per cent. For this, in next 5-6 years around $67 billion will be invested," he says.

He states that the rising production of domestic gas due to the government’s reforms and the country is making efforts to take the percentage of gas in the primary energy mix from 6 to 15%. This will see an investment of about $67 billion in the next 5-6 years.

“India is already the third largest energy consumer in the world. India is also the world's third largest oil consumer and third largest LPG consumer. We are the world's fourth largest LNG importer, fourth largest refiner, and fourth largest automobile market,” the PM says in his speech.

Emphasising the initiatives aimed at securing affordable fuel, the Prime Minister notes that despite unfavourable global conditions, India stands out as one of the few countries where petrol prices have decreased. Additionally, he highlighted the accomplishment of achieving 100% electricity coverage by electrifying millions of households.

Focusing on the support received by the Global BioFuel Alliance, “In a very short time, 22 countries and 12 international organisations have joined the Global Biofuels Alliance. This will promote the use of Biofuels all over the world. This will also help in creating economic opportunities worth about $500 billion,” the written text released states.

During the speech, PM Modi made the announcement, underscoring the government's vision to reshape the energy sector. In his remarks, PM Modi stressed the significance of harnessing technology and innovation to facilitate the transition in energy, while also ensuring that energy services remain affordable, accessible, and reliable for all citizens.

Modi further stated that ethanol blending witnessed a significant rise from 1.5% in 2014 to 12% in 2023 leading to a reduction in carbon emissions by about 42 million metric tons (MMT). “Government has set a target of 20% ethanol blending in petrol by 2025”, he says.

The PM also unveils plans for the establishment of 5,000 Compressed Biogas Plants across India. Amid global environmental concerns, he emphasised India's relatively low carbon emission share, despite its significant population, and reaffirmed the nation's commitment to achieving Net Zero Emissions by 2070.

Underscoring India's remarkable strides in renewable energy, the PM announced the country's fourth position globally in terms of installed renewable energy capacity, with 40% of this capacity sourced from non-fossil fuels. He highlighted India's progress in solar energy, noting a staggering 20-fold increase in solar energy installed capacity over the past decade. "The momentum behind India's embrace of solar energy is undeniable," he added.

Highlighting the investment plans on infrastructure and energy sector, the PM says, “In this financial year we are investing about ₹10 lakh crore on infrastructure. In the Indian budget that came just a week ago, we have now pledged to spend more than ₹11 lakh crore on infrastructure. A large part of this is sure to go to the energy sector. Whatever infrastructure will be built in the country be it railways, roadways, waterways, airways or housing with this huge amount, all will need energy.”