India, the world’s third-largest net importer of crude oil and petroleum products, should aim to become a net exporter of energy, according to Minister of Road Transport and Highways Nitin Gadkari.
“We should transform into a net energy exporter from a net energy importer. For this, we need your [automobile industry] support. It is difficult, but not impossible,” Gadkari said today while speaking at SIAM's 64th annual session.
India currently imports more than 80% of its crude oil requirements. Gadkari has been pushing the automakers to switch to alternative fuel options such as battery, hydrogen, ethanol and LNG in a bid to reduce the import bill and pollution.
He said that we import Rs 22 lakh crore worth of fossil fuels, adding that core importance should be attached to proven technology, economic viability, availability of raw materials.
The government has set a target of 30% electric vehicle penetration by the end of the decade, with two-wheelers and three-wheelers leading the adoption. Apart from EV, the government is also pushing for LNG, green hydrogen for long-haul commercial vehicles.
Recently, the government also mandated the blending of compressed biogas in compressed natural gas (CNG) for transport in a phased manner from the financial year 2025-26 with a target of 5% blending from 2028-29. Gadkari has said India has the potential to become the largest lithium-ion battery exporter, globally, by the end of the decade.
India’s battery manufacturing capacity is likely to be in the range of 100-150 GWh by the end of this decade.
The country is currently in the nascent stages of manufacturing lithium-ion batteries, which is of significant importance to electric vehicles and renewable energy storage applications. The country now depends on imports from China, Japan, and South Korea for lithium-ion batteries.