Page 50 - Policy Economic Report - Feb 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

accelerating domestic capability. He said the expansion roadmap demonstrates that India is not
dependent solely on external sources and is steadily enhancing indigenous potential.

Responding to questions on power allocation, the Minister said distribution of electricity generated from
nuclear plants follows the long-standing Gadgil formula, under which 50% of power is retained by the host
state, 35% is allocated to neighbouring states and 15% goes to the central grid. This mechanism ensures
balanced regional distribution.

On safety concerns and past apprehensions in the Kudankulam region, the Minister reiterated that India’s
nuclear programme operates on the principle of “Safety First, Production Next.” He clarified that
allegations regarding centralized storage of spent fuel at Kudankulam were scientifically unfounded, as
each reactor manages its own specific fuel cycle.

Dr. Jitendra Singh concluded that the government has instituted clear timelines for nuclear expansion and
is implementing them in a structured and disciplined manner, positioning nuclear energy as a key pillar of
India’s long-term energy transition strategy.

India looking to diversify crude, coking coal imports; keen on US supplies: Goyal

Commerce and Industry Minister Piyush Goyal noted that the US can supply several goods critical for
India’s economic growth.

India is keen to diversify its sources of crude oil and coking coal and would welcome high-quality coking
coal supplies from the United States, Commerce and Industry Minister Piyush Goyal.

Speaking at an event in Mumbai, Goyal said India is currently dependent on a limited number of
geographies for coking coal, leading to price volatility. "We want to diversify our oil sources. I want to
diversify the source of coking coal for example. I am dependent on 2 or 3 geographies (for that) and prices
keep fluctuating. I would love to have American coking coal which is high quality coming to India,” he
added.

He noted that the US can supply several goods critical for India’s economic growth, including Graphics
Processing Units (GPUs) for artificial intelligence applications, equipment for data centres and high-
performance computing infrastructure.

At the same time, Goyal said India can manufacture products in segments where the US may not be
competitive, while America can serve as a key source of advanced technology and capital. He added that
India has an aircraft demand of about $100 billion from the US over the next five years and may require
additional purchases to enhance domestic capacity and lower airfares.

Under an interim trade agreement framework, India has indicated its intent to purchase goods worth
$500 billion from the US over the next five years. An Indian delegation is expected to travel to the US next
week to finalise the legal text of the pact, which is likely to be signed in March.

Goyal said a trade deal with the US would open significant opportunities for Indian companies, especially
in labour-intensive sectors and technology services.

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