The robust economic expansion of India brings with it a corresponding surge in energy demand, expected to double over the coming decades. IndianOil, as ‘The Energy of India,’ finds itself uniquely positioned at the heart of this transformation. The country’s growth and development, coupled with its commitment to an equitable energy transition, creates an expansive landscape of opportunities for companies like IndianOil to innovate, expand, and lead.
A crucial aspect of this growth is the shift towards cleaner, more sustainable energy sources, and IndianOil has been at the forefront of this movement. One of the primary pillars of this transition is the promotion of liquefied petroleum gas (LPG) as a cleaner cooking fuel. The Government of India, recognizing the importance of providing clean cooking fuel, launched the Pradhan Mantri Ujjwala Yojana (PMUY) in 2016. This initiative aimed to provide free LPG connections to households below the poverty line.
IndianOil, through its super brand “Indane,” played a pivotal role in implementing PMUY. Prior to the launch of the scheme, household LPG coverage was only 62%, with its reach extending to nearly 166 million Indian households. By 2024, PMUY had made a transformational impact, providing more than 103.3 million additional LPG connections, with IndianOil contributing nearly half of them. This success was made possible by extensive infrastructure development, including new bottling plants, expanded delivery networks, and enhanced service models, allowing for the seamless distribution of clean cooking fuel across the nation.
Moreover, IndianOil also introduced grants under the PMUY scheme as it understood the financial hurdles that many lower-income households faced in transitioning to LPG. The company provided INR 22.2 billion out of INR 44.1 billion by oil marketing companies to cover the cost of the first refill and hotplate, allowing beneficiaries to switch to LPG without the financial burden.
Beyond mere numbers, PMUY has had a transformative impact on the health and well-being of millions of women. By reducing exposure to harmful pollutants from traditional cooking methods, the program has improved public health while also freeing women from the time-consuming task of collecting firewood. The World Health Organization has estimated that PMUY has saved at least 150,000 lives by eliminating 1.8 million tonnes of PM2.5 emissions in a year and has reduced India’s carbon footprint by 77.8 million metric tonnes of CO2 over the past eight years.
IndianOil’s commitment to promoting cleaner energy extends beyond LPG, as the company continues to expand its presence in the natural gas sector. The Government of India aims to increase the share of natural gas in the energy mix from around 6% to 15% by 2030, and IndianOil is playing a key role in this shift. With 6.54 MMT natural gas sales in FY 2023-24, IndianOil has achieved an impressive 49% year-on-year growth and currently commands a 13% market share in the sector. At the same time, IndianOil has been investing heavily in natural gas infrastructure, including the expansion of its pipeline network to 3,700 km, nearly tripling from the current 1,300 km. Additionally, through its expansion plans for the Ennore LNG Terminal from 5 to 10 MMTPA and through securing long-term supply agreements with global energy suppliers, IndianOil is set to ensure affordable and secure supplies of natural gas for India’s energy needs.
Another area where IndianOil is making significant strides is in the development of City Gas Distribution (CGD) networks. The company, on a standalone basis as well as through its joint ventures, is building CGD infrastructure across 49 geographical areas, covering approximately a fifth of the country’s population and promoting cleaner energy sources, especially in Tier II and Tier III cities.
In addition to its efforts in natural gas, IndianOil has also taken a leadership role in the biofuels sector through India’s Sustainable Alternative Towards Affordable Transportation (SATAT) initiative that targets the production of 15 MMT of compressed biogas (CBG) from 5,000 plants, with the potential to reduce India’s LNG import dependency and lower CO2 emissions by 50 million metric tonnes per year.
As we look ahead, IndianOil remains steadfast in its mission to deliver clean, affordable, and reliable energy to millions across the country. Whether through expanding LPG access under PMUY, developing a robust natural gas infrastructure, or promoting biofuels like Compressed Biogas (CBG), the company is actively building the foundations to become the leader in India’s energy evolution and to create a more sustainable energy ecosystem across sectors.
