Biofuel blending in India has increased from 1.4 per cent in 2014 to 19 per cent last month, with a target of reaching 20 per cent by October 2025. The Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, expressed confidence that the country would achieve this target.

He was speaking at the seventh edition of the Mangaluru Literature Festival, organised by Bharat Foundation at the TMA Pai International Convention Centre, Mangaluru. He mentioned that the initial target for biofuel blending was set for 2030 but was brought forward to 2025. He noted that India's daily consumption of crude oil for refining purposes had risen from five million barrels a day to 5.4 million barrels, and with current growth projections, it is expected to reach six to seven million barrels per day in the coming years. According to the International Energy Agency (IEA), India's energy demand is expected to account for 25 per cent of the global energy demand growth.

The minister emphasised the importance of strengthening energy security through green hydrogen, biofuels, and compressed biogas (CBG), while reducing dependence on imported fossil fuels and promoting environmentally friendly energy sources. He expressed optimism about the growth potential of green hydrogen, with a production target of five million metric tonnes by 2030, particularly through the implementation of pump storage. He also mentioned that IOCL had recently issued a tender for establishing a green hydrogen facility. Furthermore, he highlighted the need to support Karnataka’s efforts in setting up CBG plants and increasing the share of gas in overall energy consumption from 6 per cent to 15 per cent.

The government has included electrolysers in the Production Linked Incentives (PLI) programme, and the green hydrogen mission has allocated Rs 197 billion for research and development incentives, including PLI. This initiative is expected to attract major global electrolyzer manufacturers to establish a presence in India, he added.

The minister also referred to projections by the International Monetary Fund (IMF), which indicate that India is expected to become the fourth-largest economy by 2027. However, he believes that this milestone will be achieved earlier based on current economic indicators. He noted that before the 190-year colonial period, India contributed approximately 23 to 25 per cent of global GDP, a share that diminished to just 3 or 4 per cent by the time of independence. With current growth rates, he expressed confidence that India would become the third-largest economy sooner than anticipated.