India looks at $67B investments to improve energy mix over next 5-6 years: PM Modi

Prime Minister Narendra Modi on Tuesday said that India will see an investment of $67 billion or about Rs 5.5 lakh crore in the next 5-6 years as the nation gears up to increase its share of gas in the primary energy mix.

Speaking at the inauguration of the second edition of India Energy Week, Modi said the Indian economy is growing at the rate of more than 7.5%, and the country will soon become the world's third-largest economy.

He invited global players to participate in India's energy sector growth, saying that the country is expected to increase its refining capacity from 254 MMTPA (million metric tonnes per annum) to 450 MMTPA by 2030.

Referring to his government's unprecedented infrastructure push, Modi said that of the Rs 11 lakh crore that the FY25 budget has pledged for infrastructure, a big part will go to the energy sector.

This amount will create assets in railways, roadways, waterways, airways, or housing, which will need energy, prompting India's efforts towards expanding its energy capacity, he said, adding, "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".

Noting that India Energy Week 2024 is taking place at a time when India's GDP growth rate crossed 7.5% in the first six months of the financial year, Modi said that the pace of growth is higher than the global growth estimate making India the fastest growing economy in the world.

He also mentioned the International Monetary Fund's prediction of similar growth trends in the future.

"Economic experts around the world believe that India will soon become the third-largest economy in the world," Modi said, emphasising the expanding scope of the energy sector in India's growth story.

Throwing light on the circular economy and the concept of reuse being a part of India's ancient traditions, the Prime Minister noted that the same applies to the energy sector.

He said that this belief is symbolised by the Global BioFuel Alliance, which brings together governments, organisations, and industries from across the world on a single platform.

Initiated during the G20 Summit held in India, Modi highlighted the holistic support received by the Alliance and informed about 22 nations and 12 international organisations coming onboard to encourage the use of biofuels in the world, while also creating economic opportunities worth $500 billion.

Highlighting India's progress in the biofuel sector, Modi informed about India's rising adoption rate.

He said 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 tonnes.

"Government has set a target of 20% ethanol blending in petrol by 2025," he said.

Recalling the initiation of 20% ethanol blending in more than 80 retail outlets during India Energy Week last year, Modi informed that the number of outlets has now increased to 9,000.

Outlining the government's commitment to transforming rural economies through the waste-to-wealth management model, the Prime Minister highlighted the government's efforts towards sustainable development.

Modi said, "We are working towards the installation of 5,000 compressed biogas plants in India."

Addressing global environmental concerns, he stated, "Despite being home to 17% of the world's population, India's carbon emission share is only 4%. We are committed to further improving our energy mix by focusing on the development of environmentally sensitive energy sources."

The Prime Minister reiterated India's goal to achieve net zero emissions by 2070.

He stated, "Today, India ranks fourth in the world in renewable energy installed capacity." Around 40% of India's installed energy capacity comes from non-fossil fuels.

Highlighting the nation's progress in solar energy, he stated, "In the past decade, India's solar energy installed capacity has grown by more than 20 times."

He added that the campaign to connect with solar energy is gaining momentum in India.

Modi also noted that the launch of a major mission aimed at installing solar rooftop panels in one crore homes across India will not only make one crore families self-reliant in the energy sector but also establish mechanisms to deliver excess electricity generated directly to the grid.

He emphasised the transformative impact of these initiatives.

"There is a great potential for investment in the entire solar value chain," he added.

Touching upon India's stride towards the green hydrogen sector, the prime minister said the National Green Hydrogen Mission will pave the way for India to become a hub of hydrogen production and exports.

He expressed confidence that India's green energy sector can make both investors and industries a sure-shot winner.

The India Energy Week event reflects India's commitment towards global cooperation in the energy sector.

Earlier in the day, the prime minister also inaugurated the ONGC Sea Survival Centre, which will train 10,000 to 15,000 personnel every year.