India’s cabinet has approved an US$8.81 billion offshore oil and gas exploration programme aimed at boosting domestic energy production and reducing the country’s dependence on imported fuel.
The initiative, approved on Friday under Prime Minister Narendra Modi’s leadership, will fund exploration across India’s offshore territories in search of untapped oil and natural gas reserves.
Information and Broadcasting Minister Ashwini Vaishnaw described the project as a “very ambitious” effort, saying successful exploration could significantly increase India’s domestic energy production.
The move comes as India seeks to strengthen its energy security following recent disruptions to global oil supplies caused by tensions around the Strait of Hormuz during the conflict involving the United States and Iran.
To reduce supply risks, India has expanded its network of crude oil suppliers from 27 to 41 countries, including Venezuela, while increasing imports from Russia and several African nations.
India currently produces only about 10 per cent of the crude oil it consumes, making it one of the world’s largest energy importers. The country is the third-largest importer of crude oil and the second-largest importer of liquefied petroleum gas (LPG).
The offshore exploration mission was first announced by Prime Minister Modi during his Independence Day address last year.
Alongside the exploration initiative, the cabinet also approved a renewable energy programme aimed at adding 102 gigawatts of solar power capacity over the next five years through photovoltaic projects on reservoirs, canals and industrial water bodies.
India currently has approximately 162 gigawatts of installed solar capacity. According to the government, the new programme is expected to prevent 10 million tonnes of carbon dioxide emissions.
With energy demand continuing to grow in the country of more than 1.4 billion people, India is pursuing a dual strategy of expanding domestic fossil fuel production while accelerating renewable energy development as it works toward its target of achieving net-zero emissions by 2070.
