Ministry of Law and Justice (India)

Energy Policy of India

The energy policy of India is largely defined by the country’s expanding energy deficit and increased focus on developing alternative sources of energy, particularly nuclear, solar and wind energy. India attained 63% overall energy self-sufficiency in 2017


  • Power development in India commenced at the end of the nineteenth century with the commissioning of electricity supply in Darjeeling during 1897, followed by the commissioning of a hydropower station at Sivasamudram in Karnataka during 1902.
  • The Ministry of Power is primarily responsible for the development of electrical energy in the country. In all technical matters, the Ministry is assisted by the Central Electricity Authority (CEA).
  • The construction and operation of generation and transmission projects in the Central Sector are entrusted to Central Sector Corporations, viz., the National Thermal Power Corporation (NTPC), the National Hydroelectric Power Corporation (NHPC), the North-Eastern Electric Power Corporation (NEEPCO), and the Power Grid Corporation of India Limited (PGCIL).
  • The Power Grid is responsible for the formation of the National Power Grid.
  • Two joint-venture power corporations, namely, Satluj Jal Vidyut Nigam (SJVN) and Tehri Hydro Development Corporation (THDC) are responsible for the execution of the Nathpa Jhakri Power Project in Himachal Pradesh and projects of Tehri Hydro Power Complex in Uttarakhand respectively.
  • Three statutory bodies, i.e., the Damodar Valley Corporation (DVC), the Bhakra-Beas Management Board (BBMB) and Bureau of Energy Efficiency (BEE), are also under the administrative control of the Ministry of Power.
  • Programmes of rural electrification are provided financial assistance by the Rural Electrification Corporation (REC).
  • The autonomous bodies (societies), namely Central Power Research Institute (CPRI) and the National Power Training Institute (NTPI) are also under the administrative control of the Ministry of Power


  • Objectives of Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) are:
    • to separate agriculture and non-agriculture feeders for judicious rostering of supply to agricultural and non-agricultural consumers in rural areas;
    • strengthening and augmentation of sub transmission and distribution infrastructure in rural areas;
    • metering in rural areas (feders, distribution transformers and consumers).
  • Saubhagya (Pradhan Mantri Sahaj Bijli Har Ghar Yojana) was launched to achieve universal household electrification in the country by March, 2019.
  • Integrated Power Development Scheme (IPDS) was launched in 2014 with following components:
    • strengthening of sub-transmission and distribution network in urban areas;
    • metering of distribution transformers/feeders/consumers in urban areas;
    • IT enablement of distribution sector and strengthening of distribution network.
  • UDAY scheme (Ujwal DISCOM Assurance Yojana) was launched in 2015 for a sustainable solution to the operational and financial inefficiencies of DISCOMs across the country.
  • National Power Grid in the country is being developed in a phased manner. All five regional grids have been interconnected in synchronous mode.
  • The updated version of Energy Conservation Building code (ECBC) was launched in 2017. It sets a minimum energy standard for new commercial building having connected load of 100 KW and above or contract demand of 120 KW and above.
  • In order to provide clean cooking fuel to poor households especially in rural areas, the Government had launched Pradhan Mantri Ujjwala Yojana to provide deposit free LPG connections to 8 crore women belonging to the Below Poverty Line (BPL) households.
  • The peak power deficit during financial year 2001-02 was 12.2 per cent, approximately 9252 MW, however, at the end of 2014-15, the peak power deficit decreased to the order of 2.4 per cent.


  • Government introduced well targeted systems of subsidy delivery to LPG consumers through PAHAL.
  • Applicable subsidy is directly transferred into bank account of beneficiaries. PAHAL has entered into Guinness book of World Record for being the largest Direct Benefit Transfer scheme.


  • The Ministry of Petroleum and Natural Gas is concerned with exploration and production of oil and natural gas (including import of liquefied natural gas).
  • India surpassed Russia to become the 3rd largest energy consumer in the world after China and USA during 2015. Oil and gas accounted for around 35 per cent share in India’s energy consumption.
  • India surpassed Japan to become 3rd largest oil consumer in the world after US & China during 2015.

India is the second-largest refiner in Asia after China.

  • Sahaj was a digital initiative launched by oil marketing companies for release of LPG connection with online payment and issuance of ‘e-SV’ under the Digital India initiative and the facility is now available on pan India basis.
  • The Discovered Small Field (DSF) Policy was notified for monetization of discovered small fields of ONGC and OIL, which had not been put into production. Under the policy 30 contract areas were awarded for development through International Competitive Bidding (ICB).

Pricing of Petroleum Products

  • The Administered Pricing Mechanism (APM) or cost plus pricing for petroleum products which was introduced in 1976 was abolished from 2002, consequent to the de-regulation of the oil sector in India.
  • In 2006 government changed the pricing mechanism for petrol and diesel from import parity to trade parity (trade parity being the weighted average of import parity and export parity prices in the ratio of 80:20).
  • The pricing of PDS kerosene and domestic LPG continues on import parity basis.


  • Hindustan Petroleum Corporation Limited (HPCL) is a mega Public Sector Undertaking (PSU) with ‘Navratna’ status. It has two refineries in Mumbai and Visakhapatnam.
  • The Gas Authority of India Limited (GAIL) was established in 1984. GAIL has also set up LNG import infrastructure.

Indian Oil Corporation (Indian Oil):

  • The Indian Oil group of companies own and operate 10 of India’s 22 refineries. Indian Oil’s cross-country network of crude oil and product pipeline is the largest in the country.
    • It operates more than 20,000 outlets, the largest and most extensive network of retail outlets. The Corporation’s Indane cooking gas reaches the doorsteps of about 65 million households.
    • It has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates.
  • Bharat Petroleum Corporation Limited (BPCL) has refineries at Mumbai and Kochi. Both the refineries are certified under Integrated Management System (IMS).
  • Bharat Petro Resources Limited (BPRL), formed in 2006, is a wholly owned subsidiary and Exploration and Production (E&P) arm of BPCL.
    • BPCL is engaged in the midstream and downstream segment in India.
    • BPRL carries out upstream activities both in India and overseas.
  • Oil and Natural Gas Corporation Ltd. (ONGC) was incorporated in 1993 under Companies Act, 1956.
  • ONGC Videsh Limited (OVL) is engaged in exploration and production of oil and gas outside India. OVL was incorporated as Hydrocarbons India Limited in 1965 and was rechristened as OVL from 1989.
  • Oil India Limited (OIL), a Government of India enterprise, is engaged in the business of exploration, production and transportation of crude oil and natural gas.
    • OIL owns and operates a boot crude oil pipeline in the north-east for transportation of crude oil to feed Numaligarh, Guwahati and Bongaigaon refineries.
    • OIL also owns and operates a branch line to feed Digboi refinery.


  • Ministry of New and Renewable Energy (MNRE) is the nodal Ministry at the federal level for all matters relating to new and renewable energy.
  • India has taken a voluntary commitment of reducing emission intensity of its GDP by 33-35 per cent from 2005 levels by 2030.
  • In the recently concluded 21st COP to UNFCCC India committed to achieve about 40 per cent cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030.
  • India has renewable energy potential of about 900 GW from commercially exploitable sources viz. Wind – 102 GW (at 80 metre mast height); small hydro – 20 GW; bioenergy – 25 GW; and 750 GW solar power, assuming 3% wasteland is made available.
  • The National Institute of Wind Energy (NIWE), formerly known as Centre for Wind Energy Technology, has developed the Wind Atlas of India.
  • The Indian Institute of Science, Bengaluru has developed Biomass Atlas of India.
  • Under the National Biomass Cookstoves Initiative, several pilot projects have been taken up for deployment of improved biomass cookstoves.
  • The New National Biogas and Organic Manure Programme (NNBOMP) is being implemented with the objective to provide clean cooking fuel and to meet lighting, thermal and small power needs of farmers/ dairy farmers/users including individual households.

National Solar Mission

  • Launched in January 2010, the National Solar Mission (NSM) was the first mission to be operationalized under the National Action Plan on Climate Change (NAPCC).
  • Under NSM, the revised tariff policy requires all States to reach 10.5 per cent solar RPO by the year 2022.
  • The Ministry has been implementing a Scheme on Energy Efficient Solar Green Buildings since 2009.
  • The “Development of Solar Cities” programme aims at minimum 10 per cent reduction in projected demand of conventional energy at the end of five years.


  • The Ministry of Coal (MoC) has the overall responsibility of determining policies and strategies in respect of exploration and development of coal and lignite reserves.
  • At present around 69.5 per cent of India’s power generation capacity is based on coal.
  • 319 billion tonnes of coal reserves have been estimated which have been found mainly in Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana and Maharashtra.
  • The lignite reserves in the country have been estimated at around 45 billion tonnes. The major deposits are located in Tamil Nadu, followed by Rajasthan, Gujarat, Kerala, West Bengal and union territories of Jammu and Kashmir and Puducherry.
  • Neyveli Lignite Corporation Limited (NLC) was registered as a company in 1956 at Chennai. It has been conferred with ‘Navratna’ status since 2011.

Coal India Limited (CIL)

  • Coal India Limited (CIL) is a ‘Maha Ratna’ company under the Ministry of Coal, with headquarters at Kolkata, West Bengal.
  • CIL is the single largest coal producing company in the world.
  • Following are its wholly owned coal producing subsidiary companies:
    • Eastern Coalfields Limited (ECL), Sanctoria, West Bengal;
    • Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand;
    • Central Coalfields Limited (CCL), Ranchi, Jharkhand;
    • South Eastern Coalfields Limited (SECL), Bilaspur, Chhattisgarh;
  • Western Coalfields Limited (WCL), Nagpur, Maharashtra;
    • Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh;
    • Mahanadi Coalfields Limtied (MCL), Sambalpur, Odisha.
  • The consultancy company under it is Central Mine Planning and Design Institute Limited (CMPDIL), Ranchi, Jharkhand.
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