A strategy fuelled by vision, powered by energy

(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