India to see $67 bn investments in gas sector in 5-6 years: PM

Betul (Goa): Prime Minister Narendra Modi on Tuesday said India will witness a USD 67 billion investment in the natural gas supply chain in 5-6 years as part of "unprecedented" investments flowing into the energy sector to meet the needs of the world's fastest growing major economy.

Speaking at the second edition of the India Energy Week here, he said reforms by his government are leading to a rise in domestic natural gas production as part of the wider aim to increase the share of the fuel in the energy basket to 15 per cent by 2030 from current 6.3 per cent.

Natural gas is seen as a transition fuel in India's march towards net zero carbon emission by 2070. Gas, which is used to generate electricity, make fertiliser or turn into CNG for running automobiles as well as for cooking, is considered less polluting fuel than other fossil fuels such as coal.

Modi said India's world-beating economic growth rate is fuelling a surge in energy needs. "India is the world's third largest energy, oil and LPG consumer. It is the fourth largest LNG importer and refiner as well as the fourth largest automobile market," he said, adding the nation's energy demand is estimated to double by 2045.

Noting that India Energy Week 2024 is taking place at a time when India's GDP growth rate crossed 7.5 per cent 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 about 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.

He called on global investors to seize the opportunity to invest in the world's fastest growing energy market. "Together, we can build a future that is prosperous and environmentally sustainable," he said.

The prime minister also held a roundtable with global oil and gas CEOs and experts, but details were not immediately available. Elaborating on his government's plan to meet the growing demand, he said the effort is to ensure affordable fuel is available to all on a sustainable basis. The prime minister said that despite adverse global factors, India is among the few nations where petrol prices have come down and 100 per cent electricity coverage was achieved by electrifying crores of houses in the last two years. "India is not just meeting its needs but is also shaping the global direction," he said.

The energy needs are to be met through a combination of conventional fuels and renewable sources such as biofuels and next-generation fuels such as hydrogen. India, he said, is witnessing "unprecedented investments in the energy sector". The record Rs 11.11 lakh crore of investment outlined in the interim budget for 2024-25 last week will see a big part going into energy, he said. "This amount will create assets in railways, roadways, waterways, airways or housing which will need energy leading to India's efforts to expand its energy capacity," he said.