It is generally said that energy consumption level is an indication of industrial, economic and social conditions in the society. This is so, since use of energy is essential for industrial, agricultural, services, transport, power and other sector, growth of which would inevitably reflect on economic growth and social development.
With impressive growth of Indian economy, particularly in the last ten years, energy consumption has been steadily increasing in the country. To generate energy, fuel is required. The major source of fuel is crude oil or natural gas or coal.
India is heavily dependent on import of crude oil and natural gas for use as energy source.
India’s present requirement of crude oil is around 250 million tonne per annum and domestic production is only around 30 million tonne per annum. Therefore, around 220 mllion tonne of crude oil per annum is being imported.
India’s present requirement of natural gas is around 75 billion cubic metre per annum and domestic production is only around 35 billion cubic metre per annum. Therefore, around 40 billion cubic metre of natural gas per annum is being imported.
Domestic production of crude oil and natural gas is virtually stagnant during the last several years and is likely to increase only marginally in the coming years, inspite of government’s proactive policies to increase the domestic production of crude oil and natural gas.
The consumption of crude oil and natural gas is steadily increasing by 7% per annum and consequently, import also has to increase at the same rate.
The global price of crude oil and natural gas are fluctuating due to geo political factors and any increase in the global price cause serious problem for India due to heavy outflow of foreign exchange.
India has large deposit of coal which is an alternate fuel. During the last few........