Page 59 - Policy Economic Report_Mar'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

government incentives, policy reforms, and increased investments in domestic solar and wind turbine
manufacturing. Solar energy remained the dominant contributor to India’s renewable energy growth,
accounting for 47% of the total installed renewable energy capacity. Last year saw the installation of
18.5 GW of utility-scale solar capacity, a nearly 2.8x increase compared to 2023. Rajasthan, Gujarat, and
Tamil Nadu emerged as the top-performing states, contributing 71% of India’s total utility-scale solar
installations.

December 2024
Government scrapped windfall tax on crude oil, jet fuel, petrol and diesel exports

The government officially withdrew the windfall tax on crude oil, aviation turbine fuel (ATF), petrol, and
diesel exports, marking a complete rollback of the levy introduced during a period of heightened global
crude prices. First imposed in July 2022, the windfall tax formally known as Special Additional Excise
Duty (SAED) was introduced to capitalise on extraordinary profits earned by oil producers and exporters
amid surging global crude prices driven by the Russia-Ukraine conflict. Alongside this, the Road and
Infrastructure Cess (RIC) on petrol and diesel exports has also been scrapped, effectively removing all
export levies on fuel products.

November 2024
Through biofuel blending country saved Rupees 91,000 Crore on import bill

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said through biofuel blending, the
country has saved Rs 91,000 Crore on the import bill and this money could be utilized for the benefit of
the agricultural sector. Inaugurating the 27th Energy Technology Summit in Bengaluru, he said India had
achieved the second position in biofuel blending globally. He expressed confidence that India will
achieve the target of 20% biofuel blending by next year, much ahead of schedule. As Indian refineries
takes to green energy, the country will succeed in the goal towards green hydrogen, the Minister said.
The Minister said India’s energy demand will grow by two and a half times by 2047.

October 2024
Cabinet approved India to Join International Energy Efficiency Hub by signing the Letter of Intent

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the signing of ‘Letter
of Intent’ thus enabling India to join the ‘Energy Efficiency Hub’. India will join the International Energy
Efficiency Hub (Hub), a global platform dedicated to fostering collaboration and promoting energy
efficiency worldwide. This move solidifies India's commitment to sustainable development and aligns
with its efforts to reduce greenhouse gas emissions. Established in 2020 as the successor to the
International Partnership for Energy Efficiency Cooperation (IPEEC), in which India was a member, the
Hub brings together governments, international organizations, and private sector entities to share
knowledge, best practices, and innovative solutions. By joining the Hub, India will gain access to a vast
network of experts and resources, enabling it to enhance its domestic energy efficiency initiatives. As of
July, 2024, sixteen countries (Argentina, Australia, Brazil, Canada, China, Denmark, European
Commission, France, Germany, Japan, Korea, Luxembourg, Russia, Saudi Arabia, United States and
United Kingdom) have joined the Hub.

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