India is taking a comprehensive approach to reduce its dependence on crude oil imports and transition towards a more sustainable energy future. The government has launched multiple initiatives and policies aimed at substituting oil with alternative fuels, improving energy security, and promoting cleaner energy sources. These steps are designed to reduce the financial burden of high global oil prices and support India’s goal of reducing its carbon footprint.

1. Diversifying Fuel Sources:

The Indian government is focusing on demand substitution by promoting natural gas as an alternative fuel. Natural gas is seen as a cleaner option compared to crude oil, with a lower environmental impact. Alongside natural gas, India is also increasing the adoption of renewable and alternative fuels, such as ethanol, compressed biogas (CBG), and biodiesel. These fuels not only reduce oil dependency but also contribute to a more sustainable and eco-friendly transportation system.

2. Promoting Compressed Biogas (CBG) as an Automotive Fuel:

The government has taken significant steps to promote CBG through the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative. This program aims to encourage the production and use of CBG as an automotive fuel, helping to reduce the need for imported crude oil and mitigate environmental damage. CBG, produced from organic waste, is a renewable energy source that can significantly decrease reliance on fossil fuels.

3. Ethanol Blending and Its Benefits:

India’s ethanol blending program (EBP) has been a key measure in reducing crude oil imports. By increasing the ethanol blending percentage in petrol, India has not only reduced its dependence on imported crude but also made significant savings in foreign exchange. As of September 2024, the program has saved over US$ 12.80 billion (Rs. 1,08,655 crore) and provided US$ 10.89 billion (Rs. 92,409 crore) to farmers over the last decade. These initiatives have strengthened both energy security and the agricultural sector.

4. Reducing Price Disparities and Improving Availability:

In addition to promoting alternative fuels, the government has taken steps to insulate citizens from the impact of high global oil prices. Measures include diversifying the crude oil import basket to reduce dependence on specific suppliers, invoking Universal Service Obligation provisions to ensure availability of petrol and diesel in all areas, and implementing intra-state freight rationalisation. This last measure helps reduce price disparities in petrol and diesel within states, making fuel more affordable in remote areas.

5. Electric Vehicle Infrastructure Expansion:

Another crucial step in reducing oil dependency is expanding the infrastructure for electric vehicles (EVs). By promoting the use of EVs, India aims to further cut down on its oil imports, particularly in the transportation sector. The government is working to increase the number of EV charging stations and provide incentives for the adoption of electric mobility.

6. Supporting Clean Energy and Bioenergy Initiatives:

India is also pushing forward with initiatives aimed at boosting the use of clean energy. One such initiative is the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), which supports farmers in using solar power for agricultural activities. The PM Surya Ghar Muft Bijli Yojana provides free electricity connections to households, promoting solar energy use. Furthermore, India’s National Green Hydrogen Mission aims to harness green hydrogen as a clean energy source, reducing the need for fossil fuels.

7. Hydrocarbon Exploration and Licensing:

India is also focusing on increasing domestic oil and gas production to reduce reliance on imports. Policies like the Hydrocarbon Exploration and Licensing Policy (HELP) have been instrumental in reversing the decline in crude oil production. These measures aim to increase India’s self-sufficiency in meeting its energy needs and reduce dependence on global oil markets.

8. A Vision for 2030:

By 2030, India aims to achieve 500 GW of installed electricity capacity from non-fossil sources, further reducing the need for crude oil and other fossil fuels. The shift towards cleaner energy sources such as solar, wind, and hydroelectric power is central to India’s long-term energy strategy.

Conclusion:

Through a multi-pronged approach that includes promoting alternative fuels like ethanol, CBG, and biodiesel, expanding electric vehicle infrastructure, and implementing key initiatives for sustainable energy, India is paving the way towards reducing its crude oil import dependency. These measures will not only enhance India’s energy security but also contribute to a cleaner, greener future, positioning India as a leader in the global transition to renewable energy.