Page 41 - Policy Economic Report - November 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The Minister shared several key statistics illustrating the remarkable performance of India’s Public Sector
Enterprises. The net worth of Central Public Sector Enterprises (CPSEs) has increased by 82%, from Rs 9.5
trillion in FY14 to Rs 17.33 trillion in FY23. The contribution of CPSEs to the national exchequer—through
excise duties, taxes, and dividends, has more than doubled, rising from Rs 2.20 lakh crore in FY14 to Rs
4.58 lakh crore in FY23.

He also highlighted that the net profit of profit-making CPSEs grew by 87%, from Rs 1.29 lakh crore in FY14
to Rs 2.41 lakh crore in FY23. Furthermore, the total market capitalization of all 81 listed PSEs has grown
by 225% under the leadership of the Prime Minister Shri Narendra Modi, outpacing both the PSE index
and the BSE Sensex over the past decade.

The Minister outlined a vision for India's energy sector, emphasizing three key principles: availability,
affordability, and sustainability. “Sustainability is the cornerstone of our energy strategy and aligns
directly with our larger vision of transforming PSEs into engines of sustainable growth,” he said.

A prime example of India’s focus on sustainability, Shri Puri highlighted the significant progress in
bioethanol blending. “From 1.53% in 2014, ethanol blending has surged to 15% in 2024, with the
government advancing the target of 20% blending to 2025—five years ahead of schedule,” he said. The
Minister also revealed that discussions have already started on developing a roadmap for the post-2025
phase i.e. after attainment of 20% ethanol blending target, ensuring continued growth in the bioethanol
sector and advancing India’s renewable energy goals.

On the subject of fossil fuels, the Minister acknowledged that while India is steadily transitioning to
cleaner energy sources, fossil fuels will continue to be part of the energy mix for the foreseeable future.
He highlighted that the government's approach would be to balance the energy transition while ensuring
energy security, stability, and affordability for all citizens.

Shri Puri also highlighted the major reforms in the Exploration and Production (E&P) sector, which have
opened up significant new areas for oil and gas exploration. “We have reduced No-Go areas in Exclusive
Economic Zones (EEZ) by 99%, allowing for the largest-ever offering of 1,36,596 square kilometers in a
single bid round under the Open Acreage Licensing Policy (OALP). Of these, 13 blocks, covering 51,405
square kilometers, were previously classified as ‘No-Go’ areas,” he explained.

The Minister also emphasized India’s growing potential in green hydrogen, noting that the country’s local
demand, production capacity, and consumption patterns make it an ideal candidate to become a global
leader in green hydrogen production. He also touched upon the integration of Artificial Intelligence (AI) in
India’s energy systems, citing technological innovation as a key driver of efficiency and sustainability.

The Minister congratulated the CII for its efforts in empowering Public Sector Enterprises through
organizing summits that provide a platform for collaboration and knowledge exchange. "These summits
enable PSEs to share experiences, challenge norms, and find solutions for future challenges," he said. He
emphasized the importance of collective efforts from all stakeholders to build a future where India's PSEs
stand as pillars of excellence, integrity, and progress, guiding the nation towards sustainable growth.

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