India approves $8.8bn offshore oil and gas plan

India approved $8.8 billion in financial support for offshore oil and gas exploration on Friday as it seeks to reduce reliance on energy imports.

The cabinet, chaired by Prime Minister Narendra Modi, approved what officials described as a “very ambitious” push to explore offshore areas under India's jurisdiction for untapped oil and gas reserves.

“If exploration is carried out properly, India can achieve substantial production,” Information and Broadcasting Minister Ashwini Vaishnaw told reporters in New Delhi.

India is the world's third-largest importer of oil and the second-largest buyer of liquefied petroleum gas. The government has expanded its pool of crude suppliers from 27 to 41 countries, including Venezuela, while increasing purchases from Russia and several African nations after disruptions linked to restrictions on the Strait of Hormuz.

India currently meets only about 10 percent of its crude oil requirements through domestic production.

The cabinet also approved a separate renewable energy plan targeting 102 gigawatts of solar power capacity over the next five years through photovoltaic installations on reservoirs, canals and industrial water bodies. Vaishnaw said the programme aimed to prevent 10 million tonnes of CO2 emissions.

India's installed solar capacity is about 162 gigawatts. Energy demand in the country, home to more than 1.4 billion people, is expected to keep rising as the government pursues its target of carbon neutrality by 2070.