Steps by government to reduce import dependency on crude oil
- Press Information Bureau
- December 13, 2024
The Indian government is implementing a multi-pronged strategy to reduce crude oil import dependency, focusing on demand substitution by promoting natural gas as a fuel, increasing the share of renewable and alternative fuels such as ethanol, compressed biogas (CBG), and biodiesel, and expanding electric vehicle charging infrastructure. The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative aims to promote CBG as an automotive fuel. Additional steps to insulate citizens from high global prices include diversifying the crude import basket, invoking Universal Service Obligation provisions to ensure petrol and diesel availability, and increasing ethanol blending in petrol. Public Sector Oil Marketing Companies (OMCs) have also undertaken intra-state freight rationalisation, reducing petrol and diesel prices in remote areas and narrowing retail price disparities within states.
India's ethanol blending programme (EBP) has saved over US$ 12.80 billion (Rs. 1,08,655 crore) in foreign exchange as of September 2024 while providing US$ 10.89 billion (Rs. 92,409 crore) to farmers in the last decade. By 2030, India aims to achieve 500 GW of installed electricity capacity from non-fossil sources. Key initiatives include the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, and National Green Hydrogen Mission. The government also promotes bioenergy through the National Bioenergy Programme, supporting sustainable energy solutions. The policy measures aimed at increasing domestic oil and gas production, such as the Hydrocarbon Exploration and Licensing Policy (HELP) and others, have led to a reversal in crude oil production decline in 2023-24. These initiatives boost energy security and contribute to India's transition towards a cleaner energy future.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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