A strategy fuelled by vision, powered by energy

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(Source: The Hindu, Editorial Page)

Also Read: The Indian Express Editorial Analysis: 04 June 2025
Also Read: The Hindu Editorial Analysis: 04 June 2025

Topic: GS Paper 3 (Infrastructure – Energy, Economy), GS Paper 2 (Governance – Policy Initiatives)
Context
  • India aims to transform into a gas-based economy, targeting to increase the share of natural gas from 6% to 15% in the energy mix by 2030. This editorial elaborates on the strategic, economic, and environmental rationale behind the initiative.

Vision for a Gas-Based Economy:

  • Prime Minister’s energy policy aims for a cleaner, affordable, and sustainable energy transition.

  • India has added over 33,500 km of gas pipeline infrastructure, aiming to develop a “One Nation, One Gas Grid”.

Key Projects and Infrastructure Push:

  • City Gas Distribution (CGD) expanded to 630+ districts.

  • Public sector entities like ONGC, GAIL, and Oil India Ltd. are ramping up domestic gas production.

  • India’s LNG terminal capacity has increased to accommodate higher imports.

Institutional Support and Reforms:

  • Establishment of the Indian Gas Exchange (IGX) – a platform for market-based trading.

  • Creation of Hydrocarbon Exploration and Licensing Policy (HELP) and Open Acreage Licensing Policy (OALP).

Advantages of Natural Gas:

  • Cleaner than coal and oil – helps reduce carbon emissions.

  • Versatile use – domestic cooking, power generation, transportation.

  • Reduces oil import bill and dependency on volatile global oil markets.

Challenges to the Gas Economy:

  • Pricing Structure: High cost of LNG imports and mismatch in administered vs market pricing.

  • Distribution gaps: Difficulties in last-mile infrastructure, especially in remote and hilly regions.

  • Private Sector Hesitation: Lack of clarity in pricing and returns affects investment.

Consumer-Side Reforms Needed:

  • Making gas affordable through targeted subsidies for transport and domestic sectors.

  • Encourage faster adoption of gas appliances and vehicles.

  • Boost awareness and ecosystem development in Tier 2/3 cities.

Way Forward:

  • India’s energy transition must combine infrastructure growth with policy coherence.

  • Pricing reforms, transparent regulation, and increased competition are essential to boost investor confidence.

  • A consumer-oriented approach is key to widespread adoption.

Practice Question: India’s push for a gas-based economy is both an energy transition strategy and a geopolitical necessity. Evaluate its prospects and challenges.
GS Paper 3 | 250 words | 15 marks

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