Domestic LPG Production Rises to 50-60% of Demand; Two Tankers Transit Hormuz with 92,613 Tonnes

India’s domestic LPG production climbed to approximately 50-60% of daily demand as of March 24, 2026 — up from roughly 40% before February 28 when the US-Israel offensive on Iran began — with emergency government measures showing results. Two very large gas carriers (VLGCs), Jag Vasant and Pine Gas, transited the Strait of Hormuz on Monday evening carrying a combined 92,612.59 tonnes of LPG, expected at Indian ports between March 26-28. India is projected to receive approximately 2.5-2.75 lakh tonnes of LPG by March-end; seven additional VLGCs with a combined estimated 3.22 lakh tonnes remain idling in the Persian Gulf awaiting Hormuz transit. India consumed 33 million tonnes of LPG in FY2024-25. No dry-outs have been reported at distributorships and panic bookings have declined. Approximately 1.9 lakh LPG consumers migrated to piped natural gas (PNG) in recent days, with over 3.5 lakh domestic and commercial PNG connections activated since the conflict began. Twenty States and UTs have issued non-domestic LPG allocation orders. As of Monday, 22 Indian-flagged vessels and approximately 600 Indian seafarers are present in the western Persian Gulf.

Perspective & Context:

  • In simple terms: India has ramped up domestic LPG production significantly since the Hormuz crisis began — from supplying 40% to 50-60% of daily need from domestic sources. Two large LPG tankers made it through the Strait on Monday, filling part of the gap. But India still can’t produce all the LPG it needs domestically — seven more fully loaded tankers are sitting in the Gulf waiting for the Strait to be safer.
  • VLGC (Very Large Gas Carrier) — a specialised vessel that transports LPG at cryogenic temperatures. A single VLGC carries 40,000-90,000 tonnes. The two vessels combined (92,613 tonnes) represent roughly one full day of India’s total LPG consumption — illustrating how critical each Hormuz transit is.
  • India’s daily LPG consumption: 33 MT ÷ 365 = ~90,400 tonnes/day. The seven VLGCs idling in the Gulf (3.22 lakh tonnes) represent approximately 35 days of India’s total LPG import requirement — a sizeable buffer if they can transit.
  • PNG migration — 1.9 lakh consumers switching from cylinders to piped gas in days reflects both panic and active government push to shift consumers to the more supply-secure piped network, which draws from domestic gas grids rather than imported LPG cylinders.

Gold Swings 8% Intraday as Trump Defers Iran Energy Strikes; Worst Weekly Performance Since 1983

Spot gold fell more than 8% to a session low of $4,097.99/ounce on March 24, 2026 — its worst weekly performance since 1983 on a prior Friday basis — before rebounding to $4,470.36 (down 0.4% on the day) after US President Trump postponed planned military strikes on Iranian energy infrastructure. US gold futures fell 2.2% to $4,471.60. Spot gold has fallen over 15% since the West Asia conflict began on February 28 and approximately 20% from its record peak of $5,594.82 reached on January 29. Market analysts attributed the sell-off to the Iran war driving elevated energy prices, which raised bets on interest rates staying higher for longer — increasing the opportunity cost of holding non-yielding gold — with Trump’s announcement triggering a broad reversal across metals, energy, and equities. Silver rose 3.3% to $70.01/ounce; platinum fell 1.1% to $1,901.53; palladium rose 3.4% to $1,450.79. Iran subsequently denied any direct or indirect communications with the US.

Perspective & Context:

  • In simple terms: The Iran war has paradoxically hurt gold — normally a safe haven in conflicts — because surging oil prices push up inflation expectations, which push up rate bets, which make holding gold (which pays no yield) expensive. Trump’s pause announcement briefly reversed this logic, triggering a sharp intraday bounce.
  • Why high energy prices hurt gold: Higher oil → higher inflation → markets expect central banks to keep rates elevated → holding gold (yielding nothing) loses appeal relative to interest-bearing bonds → gold falls. The West Asia conflict drove this unusual pattern where war caused gold to drop rather than rise.
  • Key exam-testable data: worst weekly gold performance since 1983; 15% decline since Feb 28; record peak $5,594.82 on January 29; session low $4,097.99; closing level $4,470.36.
  • The $4,097 to $4,470 intraday reversal on a single social media post illustrates the extraordinary sensitivity of commodity markets to geopolitical signals when Iran’s energy infrastructure is the pressure point.

Trump Threatens to “Obliterate” Iran Power Plants; Iran Warns of Retaliatory Strikes on US Energy Targets

US President Donald Trump threatened to “obliterate” Iran’s power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, marking a significant escalation in the US-Iran conflict. Iran responded by threatening to attack US infrastructure and energy facilities in the Gulf if its power plants were struck, with Parliament Speaker Mohammad Baqer Qalibaf warning that critical infrastructure could be “irreversibly destroyed.” Iran clarified that the Strait of Hormuz remains open to all shipping except vessels linked to “Iran’s enemies.” US Marines and heavy landing craft are heading toward the region. Iran’s threat targeting US energy facilities in the Gulf refers to infrastructure in Saudi Arabia, UAE, Qatar, and Bahrain — countries hosting major US military assets as well as LNG export terminals supplying global markets.

Perspective & Context:

  • In simple terms: The US and Iran are now directly threatening each other’s energy infrastructure. The Strait of Hormuz is the key pressure point — the narrow channel through which roughly 20% of the world’s traded oil flows. If either side follows through, energy markets globally would face an immediate shock.
  • Strait of Hormuz — a narrow channel between Iran and Oman connecting the Persian Gulf to the open sea, handling roughly 21 million barrels of oil per day in peacetime — about 20% of global oil consumption. It is the world’s single most critical energy chokepoint.
  • For India, which imports roughly 85% of its crude oil, a Hormuz closure or escalation of strikes on Gulf energy infrastructure would directly spike import costs and fuel prices domestically.
  • Iran’s Parliament Speaker framed critical infrastructure — including power plants and energy facilities — as potential targets if Iran is attacked first. Attacks on civilian energy infrastructure raise significant issues under international humanitarian law.
  • The “obliterate power plants” threat represents a major escalation from earlier phases of the conflict, where the Strait of Hormuz was the primary flashpoint.

L&T Scales Electrolyser Technology to 4 MW, Eyes Global Green Hydrogen Market

Larsen & Toubro (L&T) is scaling up its presence in the global electrolyser market for green hydrogen production, positioning itself as a non-Chinese alternative amid a “China+1” supply chain shift by global buyers. The company has scaled its electrolyser modules from 0.5 MW to 4 MW — currently under testing — for deployment at Indian Oil Corporation’s (IOC) Panipat refinery in a green hydrogen project. L&T has also advanced green ammonia plans through discussions with Japan’s Itochu Corporation towards a definitive offtake agreement. In offshore wind, L&T has secured 4 GW of offshore platforms in Europe and is actively pursuing an additional 4 GW with the same customer. The company is exploring solar energy opportunities in Indonesia, supplying modules to Australia, and is in discussions with international oil companies for Africa expansion, Deputy Managing Director and President Subramanian Sarma said.

Perspective & Context:

  • In simple terms: L&T — traditionally known for building infrastructure — is making a serious push into green energy equipment, particularly electrolysers (machines that produce green hydrogen from water and renewable electricity). With the West Asia conflict disrupting fossil fuel supply chains, global companies are accelerating their interest in alternatives, and L&T wants to be the preferred non-Chinese supplier.
  • Electrolyser — a device that uses electricity to split water into hydrogen and oxygen. When powered by renewable electricity, the hydrogen produced is “green hydrogen” — a clean fuel with zero carbon emissions at the point of use.
  • Green ammonia — ammonia produced using green hydrogen instead of fossil fuels. A critical use case: it can serve as a carbon-free fertilizer feedstock and as a shipping fuel for decarbonising maritime transport.
  • China+1 strategy — the global trend of diversifying supplier bases away from sole China dependence. L&T is positioning its electrolyser technology as an alternative to both European and Chinese suppliers in a market where buyers are actively seeking alternatives.
  • The IOC Panipat refinery deployment will be the first real-world scale test of L&T’s 4 MW module — a jump from 0.5 MW prototype — and will serve as a reference project for future international export pitches.
  • 4 GW of offshore wind platforms secured in Europe with 4 GW more in the pipeline represents a significant industrial export success for an Indian heavy engineering company in a space dominated by European and US players.

Decentralised Solar Needs Grid-Aligned Consumption — EV Charging as the Missing Link

India’s installed solar capacity has expanded to 130 GW over the past decade through large solar parks and rooftop installations under schemes including PM Surya Ghar. Large-scale solar (LSS) plants face transmission evacuation bottlenecks, with insufficient capacity delaying power export from remote solar parks. Rooftop installations bring a different challenge: electricity networks were designed for one-way flow, and surplus rooftop generation fed back into the grid creates voltage fluctuations and instability — an issue states are addressing through additional charges on net metering. The article argues that pooling rooftop solar surpluses from residential colonies to power shared EV charging stations during peak daytime generation hours can absorb the “duck curve” mismatch locally, reducing pressure on distribution companies and transmission infrastructure. VOC Port in Tuticorin has operationally demonstrated this model at large scale. The PM Surya Ghar programme (average installation: ~3 kW) and PM-DRIVE scheme (expanding public EV charging) together create the policy architecture to enable this linkage.

Perspective & Context:

  • In simple terms: India has built a lot of solar power, but the electricity grid wasn’t built to handle power flowing in two directions. When rooftop solar generates more than homes can use, the excess has to go back to the grid — causing technical problems for utilities. One smart fix: use that neighbourhood surplus to charge electric vehicles during the day instead of pushing it to an already-stressed grid.
  • The “duck curve” — a grid management challenge where solar generation peaks around midday when demand is relatively low, then drops sharply in the evening when demand surges. Grid operators must rapidly ramp up conventional power (usually coal or gas) to fill the gap. Named after the duck-like shape of the daily generation curve.
  • Net metering — the billing system by which rooftop solar owners export surplus power to the grid and receive credit. Distribution companies (DISCOMs) often resist it because it erodes revenue from high-paying residential consumers and creates bidirectional flow management challenges.
  • PM Surya Ghar — the government’s rooftop solar scheme for households with subsidies for installations averaging ~3 kW. PM-DRIVE expands public EV charging points nationwide.
  • VOC Port (V.O. Chidambaranar Port, Tuticorin) has already demonstrated localised solar + fleet EV charging integration at port scale, proving the concept with measurable cost benefits — a model replicable in residential complexes.
  • T&D (Transmission & Distribution) losses — typically 15–20% of power carried over long distances — provide an additional argument for local generation-consumption matching, since power consumed where it is generated avoids these losses entirely.

Steel Ministry Seeks Oil Ministry Help as LPG Shortage Threatens Production Halts

India’s steel ministry has formally sought assistance from the oil ministry to protect steel plants from the ongoing LPG supply crisis — India’s worst in decades — caused by the disruption of energy shipments from key Middle Eastern producers due to the Iran war. India is the world’s second-largest crude steel producer. Small steel producers have warned of production halts due to gas shortages. The source quoted confirmed that discussions with the Ministry of Petroleum and Natural Gas are underway to find solutions “within the existing conditions.” Industry representatives warned that continued LPG shortages will impact margins, jobs, future investments in value-added steel, and confidence in long-term contracts, both domestic and overseas.

Perspective & Context:

  • In simple terms: India’s worst cooking gas crisis in decades is now threatening steel production too. Steel mills — especially smaller ones — use LPG for heating and industrial processes. With Middle Eastern LPG imports disrupted by the Hormuz conflict, the steel ministry is scrambling to secure gas for factories that might otherwise shut down.
  • Why smaller steel producers are most vulnerable: Large integrated steel plants (like SAIL or JSW) primarily use coking coal and natural gas in blast furnaces and can better absorb supply shocks. Smaller electric arc furnace and sponge iron plants depend more heavily on LPG for heating — and lack the purchasing power or procurement networks to quickly source alternatives or sign long-term import contracts.
  • Cascade risk: If small steel producers halt, the impact moves downstream — construction, auto components, fabrication, and manufacturing sectors that source from smaller mills face supply disruptions. India produces around 140 million tonnes of steel annually; even a 5% production shortfall ripples significantly.
  • Ministry-to-ministry escalation signals this is beyond a market-level problem — it has become a supply security issue requiring government coordination between energy and industrial policy. The steel ministry’s formal referral is also a political signal that sector stress is real, not just industry lobbying.

Iran Grants Passage to India-Flagged Ships Through Strait of Hormuz

Iran has allowed India-flagged vessels to transit the Strait of Hormuz since the start of the US-Israel war against Iran on February 28, 2026. At least four India-flagged ships — Jag Vasant, Pine Gas, Shivalik, and Nanda Devi — have transited the strait. The conflict was triggered after a US Navy submarine attacked and sank an Iranian frigate on March 4, off the coast of Sri Lanka, killing at least 87 sailors; the Iranian naval vessels IRIS Lavan and IRIS Bushehr, which had come to the region for exercises in Visakhapatnam, have since docked in Kochi and Trincomalee (Sri Lanka). Hormuz traffic, which exceeded 100 ships per day before the conflict, has plunged to single digits since the war began. Iran’s chief negotiator Abbas Araghchi confirmed no formal US-Iran negotiations are underway, while Pakistan’s Foreign Minister Ishaq Dar stated that indirect talks are being relayed through Pakistan, with the US having shared 15 points currently under Iran’s deliberation.

Perspective & Context:

  • In simple terms: Iran is letting Indian ships pass through the Hormuz Strait — a narrow chokepoint through which a significant share of India’s oil imports flow — even as it fights the US and Israel. India’s diplomatic standing with Tehran has kept its energy supply lines open during one of the most consequential West Asian conflicts in decades.
  • Strait of Hormuz — a narrow waterway between Iran and Oman connecting the Persian Gulf to the open sea; roughly 20% of global oil trade passes through it. Before the conflict, over 100 ships transited daily; traffic has now fallen to single digits.
  • The passage of 4 India-flagged vessels through a near-blockaded strait underlines India’s unique position: maintaining functional ties with Iran even as the US and Israel conduct military operations against it.
  • Pakistan’s role in relaying US messages to Iran — 15 points shared by the US, currently under Iran’s deliberation — signals Islamabad’s bid to position itself as a key regional mediator in the conflict.

India Has 60-Day Crude Buffer, One Month of LPG Supply Secured: MoPNG

The Ministry of Petroleum and Natural Gas (MoPNG) on March 27, 2026 stated that India has secured crude oil supplies sufficient for 60 days — an increase from the 50-day figure cited at the start of the West Asian conflict — and that the country’s total fuel reserve capacity (covering crude, petrol, and diesel) stands at 74 days. On LPG, the Ministry said domestic refinery production has been ramped up by 40% under a previously issued LPG control order, bringing daily output to 50,000 tonnes and meeting more than 60% of domestic requirements; the remaining supply is being sourced from imports. Approximately one month of LPG supply has been firmly arranged, with 8,00,000 tonnes of LPG cargoes en route from the US, Russia, Australia, and other countries. Hindustan Petroleum’s Chairman and Managing Director Vikas Kaushal separately noted a 15%+ surge in petrol and diesel demand across India, with some locations recording over 50% spikes. The Ministry warned against misleading social media posts and fabricated claims of shortages.

Perspective & Context:

  • In simple terms: India’s government is reassuring citizens that fuel and cooking gas supplies are stable despite the West Asia conflict — the country has stocked crude for 60 days, ramped up domestic LPG production by 40%, and has imports en route from multiple countries.
  • LPG control order — a government directive that can mandate refinery output priorities; invoking it enabled refineries to ramp up daily LPG production to 50,000 tonnes, meeting more than 60% of domestic demand.
  • Strategic cavern storage — India maintains underground rock caverns (at Mangaluru, Padur, and Visakhapatnam) that store crude oil as a long-term strategic buffer. The total reserve capacity of 74 days exceeds the 60 days of secured supply, providing an additional buffer.
  • India’s LPG import diversification — sourcing from the US, Russia, and Australia alongside Iran — reduces dependence on any single route or country, a deliberate supply chain resilience strategy.
  • The 15%+ surge in petrol and diesel demand across India — with some locations recording over 50% spikes — reflects panic-buying behaviour; the government’s social media warning targets this demand-side pressure directly.

Coal India to Add 8 Coking Coal Washeries at ₹3,300 Crore; Capacity to Rise by 21.5 MTPA by FY30

Coal India Ltd. (CIL) will set up eight new coking coal washeries with a combined washing capacity of 21.5 million tonnes per annum (MTPA) at a capital outlay of ₹3,300 crore, targeting commissioning by FY30. Of the eight, five will be built by Central Coalfields Ltd. (CCL), headquartered in Jharkhand, with a cumulative capacity of 14.5 MTPA; the remaining three will be set up by Bharat Coking Coal Ltd. (BCCL), contributing 7 MTPA. CIL currently operates 10 coking coal washeries with a total capacity of 18.35 MTPA. In addition to the new washeries, CIL will spend ₹300 crore on renovation and modernisation of existing washeries. The investment is aimed at improving the quality of coking coal, which is a critical input for steelmaking.

Perspective & Context:

  • In simple terms: Coking coal, when washed and cleaned of impurities, becomes a higher-quality input for making steel. India’s steel industry depends heavily on this, and CIL — the country’s monopoly coal miner — is investing ₹3,300 crore to more than double its cleaning capacity by 2030. Better-quality coking coal reduces imports and cuts costs for steel plants.
  • Coking coal washeries — processing plants that clean raw coking coal by removing ash, sulphur, and other impurities. Washed coal has higher carbon content and burns more efficiently in blast furnaces used for steelmaking; unwashed coal yields lower-quality coke and higher emissions.
  • Coal India Ltd. (CIL) — a Navratna central public sector enterprise (CPSE) and the world’s largest coal producer by volume, accounting for over 80% of India’s coal output. CIL operates through subsidiaries including CCL (Central Coalfields) and BCCL (Bharat Coking Coal).
  • The new 21.5 MTPA capacity adds to the existing 18.35 MTPA — a net increase of ~117% — taking CIL’s total coking coal washing capacity to nearly 40 MTPA by FY30, a meaningful step toward reducing India’s dependence on imported coking coal (India imports ~55–60 MTPA of coking coal annually, primarily from Australia).

MoPNG Invokes Essential Commodities Act to Fast-Track Piped Natural Gas Infrastructure

The Ministry of Petroleum and Natural Gas (MoPNG) has invoked the Essential Commodities Act (ECA) to accelerate the expansion of piped natural gas (PNG) networks for both domestic and commercial use. A gazette notification issued on March 25, 2026 mandates that in housing areas, relevant entities must grant permission to lay, build, or expand gas pipelines within three days of receiving an application. For last-mile connectivity, approvals must be given within 48 hours. In public areas outside housing zones, if the concerned entity neither approves nor rejects a pipeline-laying application within the stipulated timeline, it will be deemed approved automatically. The reforms aim to address delays in approvals and land access that have slowed natural gas infrastructure development, particularly in residential areas, while creating an investor-friendly framework for gas distribution networks.

Perspective & Context:

  • In simple terms: Getting permission to lay gas pipelines in cities and towns has been a major bottleneck — applications would sit for weeks or months with local authorities. The government has now used a powerful law (Essential Commodities Act) to force a 3-day deadline for approvals in residential areas, and if authorities don’t respond in time for public areas, the permission is automatically granted. This is a significant push to get piped cooking gas to more homes faster.
  • Essential Commodities Act (ECA), 1955 — a law that gives the government powers to control production, supply, and distribution of essential commodities. Invoking it for natural gas infrastructure signals the government treats gas pipeline expansion as a matter of national essential supply, not just commercial activity.
  • Why “deemed approval” matters: The automatic approval clause for public areas removes the most common bureaucratic bottleneck — indefinite delays where applications are neither approved nor rejected. This mechanism, borrowed from ease-of-doing-business reforms, shifts the burden from the applicant to the authority.
  • India’s gas infrastructure gap: India aims to raise the share of natural gas in its energy mix from ~6% to 15% by 2030. The country has about 22 million PNG (piped natural gas) connections as of 2025, covering only a fraction of the 300+ million households. City gas distribution (CGD) networks have been authorized across 295 geographical areas but actual pipeline rollout has lagged authorizations significantly.

India Buys First Iranian LPG Cargo in Years After U.S. Eases Sanctions

India has purchased its first cargo of Iranian liquefied petroleum gas (LPG) in years after the U.S. temporarily removed sanctions on Tehran’s oil and refined fuels. The sanctioned tanker Aurora, carrying Iranian LPG, is expected to reach the west coast port of Mangalore shortly. India had shunned Iranian energy imports in 2019 under Western sanctions pressure. The cargo, initially bound for China, will be shared among India’s three major fuel retailers — Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL). Payment will be made in rupees, and India is exploring additional Iranian LPG purchases. The purchase comes as the world’s second-largest LPG importer battles its worst gas crisis in decades — the government has cut industrial LPG supplies to shield households from cooking gas shortages caused by energy shipment disruptions via the Strait of Hormuz due to the U.S.-Israeli war against Iran. India consumed 33.15 million metric tons of LPG last year.

Perspective & Context:

  • In simple terms: India stopped buying Iranian energy in 2019 because of U.S. sanctions. Now that those sanctions have been temporarily lifted, India has jumped at the opportunity to buy Iranian LPG — which is cheaper and geographically closer. This is significant because India is in the middle of a serious cooking gas shortage caused by disrupted shipping through the Strait of Hormuz, the narrow waterway through which much of India’s energy imports flow.
  • Why rupee payment matters: Paying in rupees instead of dollars helps India avoid the U.S. dollar-based financial system, reducing vulnerability to future sanctions reimposition. India had used a similar rupee-payment mechanism for Iranian oil purchases before 2019.
  • Strait of Hormuz crisis: About 20% of global oil and a significant share of LPG passes through this narrow strait between Iran and Oman. The ongoing conflict has disrupted shipping, directly impacting India’s energy supply — India imports about 85% of its crude oil and is heavily dependent on LPG imports.
  • Scale context: India consumed 33.15 million metric tons of LPG last year — that’s roughly 90,000 metric tons per day. India is the world’s second-largest LPG consumer (after China), and domestic production covers only about 50% of demand. The industrial supply cuts to protect household cooking gas underscore how tight the market has become.
  • The three retailers — IOC, BPCL, and HPCL — are all government-owned companies that together distribute virtually all of India’s retail LPG through the Indane, Bharat Gas, and HP Gas brands respectively.

India Pledges 60% Non-Fossil Fuel Installed Capacity by 2035 in Updated NDC

India has submitted its updated Nationally Determined Contribution (NDC) for 2031-2035, pledging that 60% of its installed electricity capacity will come from non-fossil fuel sources by 2035, up from the current 50% target for 2030. The updated NDC also raises the emissions intensity reduction target to 47% from 2005 levels (up from 44% under the 2030 NDC) and sets a carbon sink goal of 3.5-4 billion tonnes of CO₂ equivalent (up from 2.5-3 billion tonnes). As a Paris Agreement signatory, India was required to update its NDC in 2025. India has already surpassed its 2030 non-fossil capacity target — about 52% of installed capacity is currently non-fossil — though only about 25% of actual power generated comes from non-fossil sources. On emissions intensity, India had achieved a 36% reduction from 2005 levels by 2019, and a carbon sink of 1.97 billion tonnes had been created by 2019. Forest and tree cover stands at 24.6% of India’s geographical area (2021), up from 21% in 2005 but below the national policy goal of 33%.

Perspective & Context:

  • In simple terms: India has set new, higher climate targets for 2035 — more clean energy capacity, lower carbon intensity, and bigger carbon sinks. The good news is India already hit its 2030 clean energy capacity target early. The challenge is that while clean sources make up half of installed capacity, they generate only a quarter of actual electricity, because solar and wind don’t run 24/7 like coal plants do.
  • NDC (Nationally Determined Contribution) — the voluntary climate action plan each country submits under the Paris Agreement, updated every five years. It’s not legally binding internationally, but signals a country’s commitment and shapes domestic policy direction.
  • Installed capacity vs actual generation: India having 52% non-fossil installed capacity but only ~25% non-fossil generation highlights the “capacity factor” gap — solar panels produce power only when the sun shines (~20-22% of the time), while coal plants run at 60-70% capacity. Bridging this gap requires massive investment in energy storage and grid modernisation.
  • Emissions intensity vs absolute emissions: India’s target is to reduce emissions per unit of GDP, not total emissions. As the economy grows, total emissions can still rise even as intensity falls — this is a key distinction in climate negotiations, where developed countries push for absolute emission cuts.
  • CBDR-RC (Common but Differentiated Responsibilities and Respective Capabilities) — a foundational principle of climate negotiations recognising that while all countries share responsibility for climate action, developed nations — which industrialised earlier and contributed more historically to emissions — should bear a greater burden. India frequently invokes CBDR-RC to argue that its per-capita emissions remain a fraction of Western levels.
  • India’s updated NDC comes at a time when several developed countries are scaling back climate commitments, lending weight to the argument that developing nations are now leading on climate ambition.

Modi and Dissanayake Discuss Energy Cooperation Amid West Asia Crisis

Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake held a telephone conversation on Tuesday to discuss the war in West Asia, its impact on global supply chains, and energy cooperation between India and Sri Lanka. Dissanayake stated on X that they discussed the escalating situation in the Middle East and its impact on regional and global supply chains, as well as energy cooperation and regional security. The call was initiated by the Sri Lankan government as Colombo scrambles to cope with an imminent energy crisis — Sri Lanka has imposed fuel rationing with a weekly quota for vehicles, sharply increased fuel prices, and instructed officials to take “all possible measures” towards energy conservation, including raising public awareness on careful energy use during peak hours.

Perspective & Context:

  • In simple terms: Sri Lanka, already fragile after its 2022 economic crisis, is being hit hard again by the West Asia conflict disrupting global energy supply. The country has started rationing fuel and hiking prices. Sri Lanka reached out to India to discuss energy cooperation — likely seeking help with fuel supplies, given India’s role as a regional energy hub.
  • Why Sri Lanka is vulnerable: The island nation imports nearly all its petroleum, and its foreign currency reserves remain limited after the 2022 debt crisis. Any spike in global oil prices hits Sri Lanka disproportionately hard compared to larger economies with more reserves and diversified suppliers.
  • India-Sri Lanka energy ties: India has been supplying fuel to Sri Lanka during crises — Indian Oil Corporation’s subsidiary in Sri Lanka operates ~200 fuel stations. Energy cooperation could expand to include LNG supply, renewable energy projects, and grid connectivity.
  • The West Asia conflict has disrupted the Strait of Hormuz, through which a significant share of global oil transits, causing crude prices to spike and creating fuel availability concerns across energy-importing nations in South and Southeast Asia.

PNGRB Orders City Gas Distributors to Provide Piped Gas to Schools and Colleges Within 5 Days

The Petroleum and Natural Gas Regulatory Board (PNGRB) directed city gas distribution (CGD) companies to make “all out efforts” to provision piped natural gas (PNG) to residential schools and colleges, hostels, community kitchens, and anganwadi kitchens within five days, subject to infrastructure feasibility. The regulator has sought a compliance report on connectivity after five days, and thereafter on a daily basis. The order is part of the government’s drive to accelerate the transition from liquefied petroleum gas (LPG) to piped natural gas. Senior officials told The Hindu that over the next two weeks, India holds the potential to add 15 lakh new PNG connections. Officials acknowledged that last-mile connectivity in certain areas with unfavourable city infrastructure remains a major hurdle in expanding the piped gas network, but said obstacles are being “expeditiously addressed.”

Perspective & Context:

  • In simple terms: The government’s gas regulator has given pipeline companies a tight 5-day deadline to connect schools, colleges, and community kitchens to piped gas. This is part of a push to move India from LPG cylinders to piped natural gas, which is cheaper, safer, and more convenient. The target of 15 lakh new connections in two weeks shows the urgency.
  • PNGRB (Petroleum and Natural Gas Regulatory Board) — the regulator that oversees India’s downstream gas sector, including granting CGD licences and ensuring gas quality and supply standards. It was established under the PNGRB Act, 2006.
  • CGD (City Gas Distribution) — the network of pipelines that delivers natural gas directly to homes, businesses, and vehicles (as CNG). India currently has CGD authorisation across 300+ geographical areas covering ~98% of the population, but actual connections lag far behind.
  • Why the LPG-to-PNG push matters now: With the West Asia conflict disrupting global energy markets and LPG prices spiking, piped gas (sourced partly from domestic production) offers a more price-stable alternative. PNG is typically 30-40% cheaper than LPG for household cooking.
  • 15 lakh new connections in two weeks would be a significant acceleration — India adds roughly 8-10 lakh PNG connections per month normally.

Agri-Photovoltaics: Turning India’s Farms into Dual-Purpose Solar Powerhouses

India’s 2026-27 Budget nearly doubled the PM-KUSUM scheme outlay to ₹5,000 crore, signalling renewed emphasis on farmer-centric solar power. Agri-photovoltaics (agriPV) — which integrates solar panels with farming on the same land — is emerging as a key solution to the conflict between India’s 300 GW solar capacity target by 2030 and agricultural land pressure. AgriPV systems mount panels at suitable heights above crops, using designs ranging from elevated, row-based, and vertical configurations to greenhouse-integrated systems, with crop selection tailored to shading tolerance and regional agro-climatic conditions. There are currently around 50 pilot agriPV installations nationwide. Recent consultations on PM-KUSUM 2.0 indicate the government may include agriPV in a proposed National Agri-photovoltaics Mission as a dedicated 10 GW component, with viability gap funding to offset capital costs. Business models under consideration include farmer-owned systems with surplus electricity sales, cooperative models through Farmer Producer Organisations, private developer land-lease arrangements, and State government-developed systems for local energy needs. However, large-scale deployment faces barriers: elevated mounting structures significantly increase capital costs above conventional solar, crop responses to shading vary, and regulatory clarity on land classification, grid connectivity, and tariffs remains limited.

Perspective & Context:

  • In simple terms: India needs massive amounts of solar power but also needs its farmland for food. Agri-photovoltaics solves this by putting solar panels above crops — farmers earn from both harvests and electricity. The government is considering a dedicated 10 GW mission to scale this from pilots to a national programme.
  • PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) — a scheme to provide energy and water security to farmers through decentralised solar pumps and power plants. The budget doubling to ₹5,000 crore (from ~₹2,600 crore) signals that farmer-led solar is becoming a policy priority.
  • What 10 GW of agriPV would mean: At roughly 4-5 acres per MW for agriPV (less land-efficient than ground-mounted solar due to spacing), 10 GW would cover approximately 40,000-50,000 acres — still a tiny fraction of India’s 400 million acres of agricultural land, but enough to prove commercial viability.
  • Viability Gap Funding (VGF) — government grants that bridge the gap between what a project costs and what it can earn commercially. AgriPV structures cost significantly more than conventional ground-mounted solar, so VGF would make projects bankable for private developers and farmer cooperatives.
  • Partial shading from panels can actually reduce water loss through evapotranspiration, helping crops in water-stressed regions — a dual benefit where solar panels protect crops from extreme heat while generating clean energy.

Bangladesh Rushes to Secure $2 Billion Loan Amid Energy Crisis

Bangladesh is pursuing loans of around $2 billion from multilateral agencies to tackle its mounting energy emergency — currency reserves are shrinking, global fuel prices remain elevated, and the country faces frequent power outages. The government has taken several measures to curb fuel consumption, including halving production at most fertiliser factories. Bangladesh — which imports 50% of its oil and gas needs — has been rationing electricity and has faced protests over blackouts. Most crude arrives from Saudi Arabia. The Asian Development Bank and the World Bank are among the lenders Bangladesh is approaching. An early disbursement from the IMF’s existing programme is also being sought.

Perspective & Context:

  • In simple terms: Bangladesh is running low on foreign currency to buy fuel, so it’s borrowing heavily from international lenders to keep the lights on. Power cuts have become routine, factories are running at half capacity, and people are protesting. The country needs about $2 billion just to stabilise its energy supply.
  • Why it matters regionally: Bangladesh is India’s largest trade partner in South Asia. Prolonged energy instability there can disrupt cross-border trade, push migration pressure, and affect Indian exports to the country.
  • Bangladesh imports roughly half its energy needs, making it highly vulnerable to global oil price swings — unlike India (which imports ~85% but has larger reserves and diversified suppliers), Bangladesh has limited buffer capacity.
  • The fertiliser production cuts are a double-edged sword: they save fuel but risk food security, since Bangladesh is one of the world’s most densely farmed nations.

Sri Lanka Eyes Trincomalee Project to Ease Energy Woes

Sri Lanka is pursuing the development of a major energy storage and distribution hub at Trincomalee in its eastern district, leveraging the second-largest natural harbour in the world. The project, backed by India and the United Arab Emirates, stems from a Memorandum of Agreement signed between the three parties in April 2025 during Prime Minister Narendra Modi’s visit. The initiative aims to develop Trincomalee as an energy storage hub, building on India’s role in executing the first major oil-tank refurbishment at the site under an agreement signed by the Adani Group. The Hindu reported that Sri Lanka’s Energy Ministry described the project as a long-term strategy to cope with energy storage and distribution challenges amid the ongoing energy crisis.

Perspective & Context:

  • In simple terms: Sri Lanka wants to turn Trincomalee — home to one of the world’s biggest natural harbours — into a regional energy storage hub, with India and the UAE as partners. The idea is to store fuel there so Sri Lanka (and potentially the region) isn’t caught short during global supply disruptions like the ones that triggered its 2022 economic crisis.
  • Trincomalee’s strategic significance: The harbour has massive oil storage tank farms built during World War II by the British. India has long had an interest in these facilities — the Adani Group’s involvement in refurbishing tanks is part of broader India-Sri Lanka energy diplomacy.
  • India-UAE-Sri Lanka triangle: This is a rare trilateral energy project in the Indian Ocean region. For India, it secures strategic influence in Sri Lanka’s energy infrastructure; for the UAE, it’s an investment in downstream oil storage along key shipping routes.
  • Sri Lanka’s 2022 economic collapse was triggered largely by fuel shortages — developing domestic storage capacity is a direct lesson from that crisis, aiming to build a buffer against future global supply shocks.