Over 37% of bids under OALP have come from previous no-go areas: Shri Hardeep Singh Puri, Hon’ble Minister for Petroleum and Natural Gas
Hon’ble Union Minister for Petroleum and Natural Gas Hardeep Singh Puri today said over 1 million square kilometres of sedimentary basins, previously marked as ‘no-go’ zones, have now been opened for exploration. This has resulted in over 37% of bids under the Open Acreage Licensing Policy (OALP) coming from these newly opened areas.
Speaking during the CII Annual Business Summit 2025 in New Delhi, Mr Puri highlighted progression towards a cleaner, more secure energy future, driven by policy reforms in exploration and production activities, natural gas infrastructure expansion, and strong targets for biofuels and green hydrogen.
The Minister also said that there was a huge potential for the production of Sustainable Aviation Fuel (SAF) in large quantities in countries like India, Brazil, the USA and Canada.
He was addressing a special plenary session titled Securing India’s Energy Future: Transition & Global Alignment. Stating that India will be one of the refining hubs, he said the trend was towards the emergence of refining hubs instead of teapot refineries. India's refining capacity currently stands at 260 million tonnes per annum (MMTPA), and is expected to reach 309.5 MMTPA by 2028, he said.
Speaking on the significance of the recently passed Oilfields (Regulation and Development) Amendment Act, 2025, Mr Puri emphasized that India has taken a leap in ease of doing business in the exploration and production activities, with the introduction of a single permit system.
Despite importing 5.6 million barrels of crude oil per day and spending $139 billion last year on imports, domestic reforms are expected to reduce this dependency. The government is encouraging domestic exploration while diversifying import sources from 27 to 40 countries. He said more crude oil will be available in countries like Brazil, Guyana, Suriname, Canada, and Argentina.
Mr Rajiv Memani, President Designate, CII, while delivering his welcome remarks, underscored the urgency to diversify India’s domestic production and accelerate the adoption of alternative fuels. He stated, “Today, India imports over 85% of its crude oil and a significant share of natural gas. Some projections suggest it may reach 90% by 2030. India also imports 50-55 per cent of natural gas. This reliance underscores the urgency to diversify our energy mix, enhance domestic production, and accelerate the adoption of alternative fuels.”
Remarking on the success of India’s Ethanol Blending Program, the minister highlighted India’s achievement, with an increase from 1.4% ethanol blending in 2014 to 20% blending by 2025, significantly ahead of its original timeline.
The Minister also noted substantial progress in India’s natural gas infrastructure. With 22,000 km of pipelines laid as of 2024, the country is on track to reach its target of 33,000 km by 2030. Domestic gas availability is improving, and global gas prices have stabilized, offering more flexibility for industrial and residential use.
Addressing the Ujjwala Yojana Scheme, launched in 2016, the Minister informed that there are around 10.3 crore beneficiaries under the scheme. Today, India has over 33 crore Liquefied Petroleum Gas (LPG) connections, reflecting the government’s commitment to making clean cooking fuel accessible to all.
On the Compressed Biogas (CBG) front, the production of Fermented Organic Manure (FOM) as a by-product remains a key source of revenue for producers. India has set an ambitious target of establishing 5,000 CBG plants, said Mr Puri, adding that ongoing dialogues with state governments are expected to accelerate progress. However, the pace of development will largely depend on land availability and pricing mechanisms.
30 May 2025
New Delhi