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Clean energy sector requires investment worth $150 billion annually until 2040, says Dharmendra Pradhan

Rolled out by the NITI Aayog, the National Energy Policy aims to improve the energy security of the country by reducing the dependency on imports.

twitter-logo BusinessToday.In   New Delhi     Last Updated: December 31, 2018  | 21:50 IST
Clean energy sector requires investment worth $150 billion annually until 2040, says Dharmendra Pradhan

The Modi government's vision of clean energy programme will require an investment of over USD 150 billion on annual basis until 2040, says Dharmendra Pradhan, Minister of Petroleum & Natural Gas, on Monday.

Replying to a debate in the Lok Sabha, the Minister said that as per draft National Energy Policy of the NITI Aayog, the country's think-tank, USD 150 billion capital investment is needed in the energy sector on an annual basis until 2040.

Rolled out by the NITI Aayog, the National Energy Policy aims to improve the energy security of the country by reducing the dependency on imports. As of now, India is heavily dependent on oil and gas import.

Pradhan said that the government has agreed to establish the gas trading exchanges in the country wherein the natural gas can be freely traded and supplied through a market mechanism. However, due to the administrative, legal, operational issues, a precise timeframe for operationalising the gas trading exchanges cannot be indicated at this stage, he said.

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The minister informed the Lower House that in order to develop the national gas grid, the government has taken a decision to provide a capital grant of Rs 5176 crore (i.e. 40% of the estimated capital cost of Rs 12,940 Crore) to state-run GAIL for development of a 2655 Km long Jagdishpur-Haldia/Bokaro-Dhamra Gas Pipeline (JHBDPL) project. This pipeline will transport natural gas to the industrial, commercial, domestic and transport sectors in Bihar, Jharkhand, Odisha, West Bengal and Uttar Pradesh, he said.

Commenting on the expansion of City Gas Network in the state of Jharkhand, the minister said that PNGRB has authorised Bokaro, Hazaribagh and Ramgarh districts area, Giridih and Dhanbad districts area, Ranchi district and East Singhbhoom district at an average investment of Rs 400 crore per district during the work plan period.

The minister also informed the House that oil public sector companies including Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have decided to set up an integrated refinery-cum-petrochemical complex with a refining capacity of 60 MMTPA (Million Metric Tonnes Per Annum) at Babulwadi, Taluka Rajapur in Ratnagiri District in the state of Maharashtra.

Edited by Chitranjan Kumar

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