Page 56 - Policy Economic Report - April 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

On clean energy transition, Dr. Jitendra Singh said the National Green Hydrogen Mission, with outlay of
Rs 19,744 Cr, has placed India among the frontrunners in developing alternative fuel ecosystems. He said
green hydrogen will play a key role in decarbonising hard-to-abate sectors such as steel and cement, while
efforts are underway to reduce production costs through domestic manufacturing and innovation.

The Minister also shared progress in India’s nuclear energy programme, stating that the recently
announced Nuclear Energy Mission aims to achieve 100 GW of nuclear power capacity by 2047. He said
India has entered the next phase of its nuclear programme with indigenous technological advancements,
placing it among a select group of nations.

Highlighting the role of small reactors, Dr. Jitendra Singh said India plans to develop five Small
Modular/Small Reactors by 2033, with work already underway on three of them. These include a Bharat
Small Modular Reactor (SMR), a Bharat Small Reactor (BSR) based on established heavy water technology,
and a small-scale hydrogen-linked reactor of a few megawatts’ capacity. He said such reactors will enable
flexible, scalable, and decentralised clean energy solutions, while also supporting emerging hydrogen
applications.

The Minister said recent policy reforms have opened the nuclear sector for private participation, along
with rationalised liability provisions to facilitate wider industry engagement. He said these steps will
encourage startups, MSMEs and private players to contribute to the expansion of clean energy
infrastructure.

Dr. Jitendra Singh also spoke about emerging opportunities in green jobs and innovation, noting that
sectors such as electric mobility, battery recycling, grid management, and renewable manufacturing are
generating new livelihood avenues. He referred to ongoing initiatives in the circular economy, including
conversion of used cooking oil and agricultural residue into biofuels, as well as new frontiers like ocean
energy under the Deep Ocean Mission.

The Union Minister said India’s demographic strength, technological capabilities and policy direction
position it to play a significant role in global decarbonisation efforts, while ensuring sustainable growth
and energy access for its population.

BCGCL and MCL Sign Landmark Land Leasing Agreement for Coal to Ammonium Nitrate Project at
Lakhanpur, Odisha

In a major step towards advancing India’s coal gasification roadmap, a landmark land leasing agreement
was signed between Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields
Limited (MCL) for the upcoming Coal to Ammonium Nitrate Project at Lakhanpur, Odisha. The signing
ceremony was held in New Delhi in the august presence of the Union Minister of Coal and Mines Shri G
Kishan Reddy.

The project, envisaged as a Coal to 2000 TPD Ammonium Nitrate facility, marks a historic breakthrough
as India’s first coal gasification project to deploy indigenously developed gasification technology by Bharat
Heavy Electricals Limited (BHEL). It reflects a decisive shift towards indigenous innovation, technological
advancement, and reduced dependence on imported technologies in the energy and chemical sectors.

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