In
an increasingly volatile geopolitical environment, energy independence has
become a strategic necessity for India. As Anil Agarwal in his recent tweet
said, “India is vulnerable because we import 90% of our oil and gas”, despite
being surrounded by sea on three sides that “can be blockaded in hostile
times.” With India poised to remain the world’s fastest-growing oil and gas
market for at least the next two decades, domestic production is no longer
optional it is critical.
India’s
advantage lies beneath its soil. The country is endowed with 300 billion
barrels equivalent of hydrocarbon resources, “more than 30 times Guyana’s
potential.” Coupled with this is India’s global talent strength, “across the
world, 10% of experts in this industry are Indians.” The missing link, however,
is large-scale exploration. “Exploration is the core of this business,” Agarwal
emphasises, pointing to the US example where opening up exploration to
entrepreneurs transformed the country from import dependence to
self-sufficiency.
Drawing
from his 15-year experience, Agarwal underscores that India can produce
hydrocarbons at half the cost of imports, while the sector has already
“contributed $40 billion to the exchequer” and delivered 1.3 billion barrels
through Cairn. Yet, unlike other sectors, “this sector has no government
protection or incentive like PLI.”
A
key concern remains regulatory uncertainty. “Today, there are hardly 20 active
licences in India when there should be 2,000,” he says, warning that fear of
“processes, notices, court cases and taking away the licenses” deters global
investors. Using a powerful analogy, he recalls how “one incident” at Bharatpur’s
bird sanctuary caused birds to stop returning illustrating how fragile investor
confidence can be.
Agarwal
is clear-eyed about global realities: “The world doesn’t want India to produce.
It only wants India to be a market.” Yet history proves otherwise. Just as
India moved from food imports to self-sufficiency, “it all happened because the
government created a movement.” The same resolve is now needed for energy.
With
the Government encouraging growth and investment, Vedanta has set its ambition
to increase production five times, while “for India, production must grow ten
times to meet future needs.” His vision is bold and inclusive: “thousands of
drilling rigs operating across the country,” with startups and small
entrepreneurs participating through investments of around ₹5 crore.
The
message is unequivocal, “this is the right time to shift from heavy regulation
to facilitation.” India’s journey to energy independence may be long, but as
Agarwal concludes, “our potential is extraordinary.”
X : https://x.com/AnilAgarwal_Ved/status/2020727067252552016?s=20