India imports 50% of gas needs, targets 10X CBG output: Hardeep Singh Puri

Petroleum and Natural Gas Minister Hardeep Singh Puri said India needs to strengthen domestic energy production as global turbulence continues, pointing to rising energy demand and the country’s dependence on imported natural gas.

Speaking at a news conference, Puri said India’s economy grew 7.8% year-on-year in real terms in April-June 2026, while energy demand is growing at around three times the global average. Sustaining that growth, he said, requires reliable and affordable energy, with more of it produced within India.

Puri said nearly 50% of India’s natural gas needs are met through imports, while the country’s LNG import bill exceeded $13 billion in FY2025-26. He said this dependence leaves India exposed to disruptions beyond its borders even as the economy requires more energy.


Also read: No global oil shortage, supply route disruptions driving crude prices, oil minister says

On the global energy situation, Puri said the turmoil that became manifest with the Russia-Ukraine military conflict in February 2022 took an even more serious turn when the Strait of Hormuz was choked on February 28, 2026. He said supply management was being undertaken and that he remains concerned about how many cargoes are able to pass through the route.

“How long can this go on?” Puri said, referring to the continuing global turbulence. He said India has no control over the turbulence being created by other quarters with their own worldview.

Puri said Prime Minister Narendra Modi has repeatedly said that this is not the time for war and called for diplomacy and efforts towards peace. At the same time, he said India needs to insulate itself from the turbulence.

The minister said India needs sustained energy supplies and must cushion consumers against the worst impacts of global volatility. He pointed to reductions in central excise duty on three occasions — November 2021, May 2022 and March 10, 2026. On the last occasion, he said the reduction was ₹10 a litre on petrol and diesel.

Also read: India oil refiners change tactics and hire ships to cross Hormuz

Puri says new CBG framework is ‘qualitatively different’

Puri said the government’s latest approach to compressed biogas (CBG) is different from previous efforts, arguing that the new framework brings together several elements needed to make the system work.

He said a decision was taken to have one central coordinating agency, instead of several departments dealing with the issue separately. He also said that while a national framework can be devised in Delhi, implementation has to come from state governments. A model policy has been made available to state governments, he said, while chief ministers would send clusters for the programme.

According to Puri, the urgency comes from India’s rising energy requirements and the need to produce more energy domestically. He said the government has approved an outlay of ₹24,000 crore for the new scheme.

Puri said the framework is designed around guaranteed offtake. He said participants following the guidelines and coming in with state governments under state plans would have their offtake guaranteed. The government would also help identify feedstock clusters and assist with pipelines, he said.

A key feature, according to Puri, is the price at which the offtake would take place. He said it would be 30% higher than the global price.

“What more can a government do?” Puri said, urging stakeholders to take advantage of the framework.

He said the reforms are designed to make the entire chain work together, from collecting feedstock to selling the gas. Puri said there are currently over 217 CBG plants commissioned and 357 under construction, and expressed the view that the new framework would lead to a transformation in the number of plants and the overall system.

‘Nearly tenfold’ jump in domestic CBG production

Puri said the central aim of the scheme is to increase domestic CBG production nearly tenfold.

He said the scheme provides support of up to ₹2 crore per tonne per day (TPD) of installed capacity. He also listed administered pricing of offtake and procurement, lower upfront costs and more predictable revenues as elements that strengthen the commercial case.

The framework also includes an offtake arrangement involving city gas distribution entities, a system through which locally produced gas can reach consumers consistently, and credit-guarantee support for eligible MSME-based projects, Puri said.

He said local capabilities would be further strengthened, while segregation and supply arrangements with local bodies would be facilitated through the state plans.

Puri also referred to his earlier tenure as housing and urban affairs minister and the discussions around the circular economy, waste segregation and scientific waste processing. He said economic growth produces waste and that systems are needed for segregation and scientific processing, while legacy dump sites also have to be reduced.

Puri said the government is now looking at a system in which state governments, industry, financial institutions and other stakeholders have roles to play. He said the ministry is taking on a coordinating role and expressed confidence that the new approach can deliver the intended outcome.