The Rajya Sabha on Tuesday returned the Appropriation Bill, 2026 to the Lok Sabha after Finance Minister Nirmala Sitharaman replied to the debate. She said the government is taking steps to ensure adequate LPG supply amid the West Asia crisis.
She said despite global “turbulent times….domestic LPG production has gone up by 25%, and the entire output of this ramped-up production is going to domestic consumers.” “In the LPG sector, we have been building capacity, and even in these times, the way in which we have ramped up domestic capacity in LPG is also proving helpful,” she said.
Heavy import dependence raises concerns
The minister said India still relies heavily on LPG imports. Around 65 per cent of the country’s LPG comes from overseas sources. A major chunk of this passes through the Strait of Hormuz.
She underlined the risk involved. “Overwhelmingly majority of it, 90% of the 65% comes from the Strait of Hormuz” and the government is taking proactive steps to avoid shortages.
She added that contingency planning is already in place. “But we are not just depending on getting the steady flow even in troubled waters,” Sitharaman stated.
Refineries and petrochemical units have been asked to increase output. They have been directed to “maximize LPG production by diverting propane, butane and propylene and butane streams to the LPG pool.”
The push is part of the broader self-reliance plan. She linked it to the ‘Atmanirbhar Bharat’ push led by Narendra Modi. She said the ability to “ramp up domestic LPG production by 25% literally overnight” is the “outcome of a deliberate, decade-long energy transition strategy launched” by the Prime Minister Narendra Modi.
She stressed policy alignment. “nothing is a standalone” and “everything in this policy seems to come together in the name of Atmanirbhar” to meet emergency situations.
Power sector emerges as strong backup
Sitharaman said the power sector is now a major support system. It adds strength during uncertain times.
She said India’s installed capacity crossed 520.5 gigawatts by January 2026. This marks a sharp increase.
“Non fossil sources now stand at 271.97 gigawatts, accounting for more than 52% of total capacity and surpassing fossil fuel capacity,” she said, adding that “for the first time in India’s history, non-fossil sources exceed fossil fuel capacity.”
She said the target was achieved early. India reached this position five years ahead of schedule.
The minister said steady policies help manage crises. Supplies will remain stable and systems are ready.
“We are not just depending on a steady flow even in troubled waters. The way in which we have built our power sector, in today’s times, stands as a very big support for us, because Atmanirbhar Bharat and sufficiency in energy through our power sector are actually playing out in many different ways in supporting this,” Sitharaman stated.