In this context, India’s Viksit Bharat roadmap sets ambitious goals for the nation: increasing domestic crude production to 100 MMT, gas production to 100 BCM, and refining capacity to 450 MMTPA by 2047. At PwC, we believe that achieving these targets demands a complete transformation across the oil and gas value chain across upstream, midstream, and downstream.
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Unlocking domestic energy for a self-reliant future:
India’s upstream energy landscape is defined by untapped potential and critical import dependency. While over 88% of crude oil is imported, about 90% sedimentary basins remain unexplored. The Government’s progressive policy framework has set the stage—however, there is need for a mission-driven push. The proposed Samudra Manthan National Deep Water Exploration Mission is pivotal for enhancing exploration and reserve accretion. This must be actioned through structured funding mechanisms such as Oil Industry Development Board cess, implementing next-generation National Data Repository 2.0, and fast-tracking regulatory clearances for onshore drilling through state incentivisation.
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Driving energy connectivity and infrastructure:
Taking the example of natural gas, while infrastructure exists, it is under-utilised—with pipelines at 41% capacity and most LNG terminals not running full throttle. This needs systemic reform—developing an integrated National Gas Grid and expediting currently delayed projects, and establishing an independent transport system operator to ensure fair and efficient use of the network. Further steps such as implementing uniform state-level city gas distribution (CGD) policies, embedding piped natural gas infrastructure and metering in new building codes, pushing LNG consumption in heavy-duty transport as part of natural gas expansion would be vital to boost consumption and ensure energy reaches every corner of the nation.
Building downstream refining and petrochemicals for strategic advantage:
Domestic demand for petroleum products is projected to nearly double by 2040, requiring not just expanded capacity but need for value-add products. There must be significant focus on building integrated refinery-petrochemical complexes to capture higher value and improve global competitiveness. Also, adequate focus should be on feedstock availability and volatility management for these complexes, which can be ensured by expanding strategic petroleum reserves to provide cover and further establishing dedicated gas reserves to act as buffers against global price volatility and supply disruptions.
Greening fuels with biofuels:
Biofuels are a strategic pillar of Kal ka Bharat, as these help in reducing import bills, cutting emissions, and boosting rural economies. India’s success with 20% ethanol blending is a great starting point for a robust biofuels roadmap for the future. In addition, we would suggest having an integrated biofuels mission under a single ministry for better coordination—prioritising high-yield, lignocellulosic feedstock cultivation, and setting clear CBG blending mandates—to accelerate biofuels development.
Empowering sectoral institutions for global heft:
The ambition of Kal ka Bharat also requires Indian energy companies to compete on the global stage. Hence, we can consider creation of consolidated oil and gas majors across the value chain to build the scale and synergy needed for international success. This must be paired with greater operational autonomy, including the development of leadership capabilities, attracting top talent, enhancing investment limits to seize opportunities, and streamlining board governance. Scale and autonomy will not only help in better sourcing power and placing project orders but also help in acquisition, helping secure resources internationally.
The path forward: An integrated energy imperative
To conclude, a potential blueprint for oil and gas in ‘Kal ka Bharat’ has been outlined above, providing a path towards secure, self-reliant, and sustainable energy future. This is no longer a sectoral goal—it’s a national energy imperative. The Government has outlined the vision—its realisation now depends on synchronised action from policymakers, regulators, and industry leaders.
While the long-term blueprint is a work in progress, considering the upcoming budget and new year in the short term, it is important to look at rationalising taxes and duties in oil and gas value chains in a judicious manner. These can range from inclusion of transport fuels in GST, harmonisation of CNG, LNG excise with biogas which is under GST, and duty support for key petrochemicals once manufacturing is ramped up. Along with other near-term asks of actualising Samudra Manthan Mission and Integrated Biofuels Mission in the upcoming budget, India can be on the path to enhanced domestic self-reliance, improved energy connectivity, and rural-driven bioenergy production. The imperative is in front of us—the time to act is now.
(The author is Leader Oil & Gas, Fuels & Resources, PwC India. Abhinav Gupta – Associate Director, PwC India also contributed to this article.)
