India's coordinated, concerted effort shielded citizens during Hormuz energy disruption, says Amitabh Kant
New Delhi, June 30
India's ability to maintain normal life despite an "extraordinary" global energy crisis underscores a model of coordinated governance and digital delivery that will anchor future supply resilience, Amitabh Kant, Former CEO, NITI Aayog & India's former G20 Sherpa, said in an exclusive conversation with.
"India imports almost 86 per cent of its fossil fuel... almost 60 percent of its LPG. In any other country this would have created chaos... complete breakdown of the economy," Kant said. "To my mind, India has handled this in an extraordinary manner, probably even better than how COVID was managed because it ensured that the life of the common man and the inflationary impact... did not hit the common man at all."
Central to that was early policy action. "India brought in the LPG control order very early," he said, which ensured availability while keeping prices stable. "While its cost was 1600, to a common man it was available to an Ujwala consumer at 642 rupees and to the common man at 942 rupees," Kant noted. "The rest of the pricing was absorbed by the gum," with excise duty "brought down from Rs 13 to Rs 3" on petrol and "from Rs 10 to zero rupees" on diesel, ensuring "the burden was not passed on to the common man."
He said supply was secured through diplomacy and diversification. "Despite the crisis, there were 12 Indian vessels which came through the Strait of Hormuz... great diplomacy at work," he said.
Procurement was expanded "from 27 countries... to 41 countries," creating a "wide base that greatly helped India." Domestically, "refineries were technologically transformed to produce LPG... India's LPG production actually greatly enhanced."
He said digital tools prevented leakage and the government used India's digital technology to ensure that the right man gets the supply.
"Aadhaar was used. Piped gas connection was used... timelines were prescribed...no consumer was harassed," he said.
He said the outcome contrasted sharply with global trends. "The rest of the world...pandemonium... inflation has taken place. Every single citizen was hit. In India's case, the government took the responsibility."
Kant credited "very concerted inter-ministerial functioning". "India has delivered during this period." The episode, he said, "demonstrates good governance and great administration," with vision and coordination ensuring "life remained normal and... the common life of common citizen was not impacted at all."
— ANI
Reader Comments
Interesting but let's not forget it was the common man's money (taxes) that funded this cushion. Yes, it's good that inflation didn't hit us as badly as elsewhere, but the question remains—how sustainable is this model in the long run? Diversifying suppliers is smart though.
From 27 countries to 41 countries for procurement—that's massive. And using Aadhaar to plug leakages is a game-changer. I remember the days of black marketing in LPG, those days are gone now. Good governance indeed.
What I find remarkable is that while Europe was panicking and governments were collapsing over energy prices, life in India continued as normal. My father in a tier-3 town didn't even know there was a global energy crisis until I told him. That's the kind of cushioning that matters.
As someone who follows global energy markets, I have to say this is genuinely impressive. Most developing nations would have seen riots and blackouts. India's mix of diplomacy (sending 12 ships through Hormuz), domestic refinery upgrades, and digital delivery is a case study in crisis management.
The Ujjwala scheme beneficiaries getting cylinders at ₹642 when global prices were through the roof—that's not just policy, that's compassion in governance. Yes, there are always gaps, but the intent and execution here deserve appreciation. 🙏
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