Page 47 - Policy Economic Report - December 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Speaking on the occasion, Sh. Manohar Lal said, “Today, I officially commenced the Commercial Operation
Date (COD) process of the 3rd Unit (250 MW) of the 1000 MW Variable Speed Pumped Storage Plant (PSP)
at Tehri, Uttarakhand. This landmark achievement marks India’s first Variable Speed PSP and strengthens
our clean energy transition, supporting the Hon’ble Prime Minister’s vision of a Viksit Bharat by 2047.” He
emphasized the critical role of PSPs in ensuring reliable power supply and grid stability, especially with
rising renewable energy integration.

Minister of State for Power, Sh. Shripad Y Naik, highlighted THDCIL’s leadership in pumped storage and its
contribution to India’s energy security. Further Sh. Pankaj Agarwal, Secretary, Ministry of Power, also
congratulated THDCIL for commissioning major projects this year.

India’s Atmanirbharta in Defence Emerges as a Measurable and Credible Reality: Shripad Naik

Union Minister of State for Power and New & Renewable Energy, Shri Shripad Yesso Naik, while addressing
a press conference in New Delhi said that India’s journey towards Atmanirbharta in defence has been
decisively shaped by the visionary and resolute leadership of Prime Minister Shri Narendra Modi, whose
clear articulation that national security, economic strength and technological sovereignty are deeply
interconnected has transformed defence manufacturing from a strategic necessity into a national mission.

The Minister said that the country has moved with confidence from being a major importer of defence
equipment to a nation that designs, develops, manufactures and increasingly exports advanced defence
systems, firmly positioning defence self-reliance as a cornerstone of India’s rise as a strong, secure and
self-assured global power.

He added that the defence sector has undergone a structural transformation from import dependence to
indigenous capability, anchored in the vision of Atmanirbhar Bharat and Make in India – Make for the
World. In recognition of the momentum achieved, 2025 has been declared the ‘Year of Reforms’ in the
Ministry of Defence, marking accelerated progress in defence indigenisation alongside enhanced
operational preparedness of the Armed Forces.

Shri Naik noted that defence production reached an all-time high of ?1.54 lakh crore in FY 2024–25, rising
from ?46,429 crore in 2014–15, demonstrating the scale, depth and maturity of India’s indigenous
defence manufacturing base. Defence exports surged to a record ?23,622 crore in FY 2024–25, compared
to less than ?1,000 crore in 2014, underscoring India’s emergence as a credible and competitive global
defence supplier. India has supplied a wide spectrum of defence products—including ammunition, arms,
sub-systems, complete systems and critical components—to around 80 countries, reaffirming its role as
a reliable partner in the global defence supply chain.

He further said that the private sector’s contribution has risen to nearly 23% of total defence production,
reflecting growing competitiveness, innovation and confidence of Indian industry, while Defence Public
Sector Undertakings continue to play a critical role, accounting for about 77% of total defence production
within a more accountable and performance-oriented framework. Five Positive Indigenisation Lists,
covering over 5,500 items, have been notified, with more than 3,000 items already indigenised, decisively
reducing import dependence and strengthening domestic capability.

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