India Must Integrate Crude, Gas, LPG and Battery Storage Under One Policy: S&P Global's Gauri Jauhar

Why It Matters

A unified policy would streamline investments, cut stranded‑asset risk, and speed India’s transition to a resilient, low‑carbon energy system—essential for meeting its net‑zero target and bolstering energy security.

Key Takeaways

• Unified storage policy links crude, LPG, gas, batteries
• Battery duty cuts and ACC scheme boost domestic EV supply
• Coal‑gasification funding rose >800%, battery storage >900% in budget
• Hybrid fuel strategy keeps CNG and multi‑fuel vehicles viable

Pulse Analysis

India’s energy‑storage landscape is currently fragmented across oil, gas, LPG and emerging battery technologies, creating planning inefficiencies and higher costs. By consolidating these assets under a single policy framework, the government can apply a "stocks and flows" approach that aligns storage capacity with seasonal demand, sectoral needs, and the country’s long‑term climate objectives. This integration mirrors global best practices where holistic storage strategies enable smoother renewable integration and safeguard supply chains against geopolitical shocks.

The 2026‑27 Union Budget signals a decisive pivot: allocations for coal‑gasification projects surged more than 800%, while funding for battery‑energy‑storage systems jumped roughly 900%. These figures illustrate a dual focus on synthetic fuels and large‑scale storage to buffer intermittent renewables. Simultaneously, S&P Global’s Gauri Jauhar urges the government to lower duties on lithium and related components and to expand the Production‑Linked Incentive scheme for Advanced Cell Chemistry, including sodium‑ion batteries. Such measures would nurture a domestic supply chain, reduce reliance on imports, and accelerate electric‑vehicle adoption across a market still dominated by multi‑fuel and CNG vehicles.

Beyond financing, policy cohesion is vital for avoiding stranded assets as renewable capacity outpaces traditional generation. Jauhar points to recent peaks where solar supplied 22% of demand and to upcoming income‑tax exemptions for data centres through 2047, both of which demand reliable, flexible storage. A unified storage policy would also support India’s hybrid fuel strategy—maintaining CNG and diesel for heavy‑duty transport while scaling bio‑ethanol and electric mobility—ensuring the 2047 Viksit Bharat vision and the 2070 net‑zero commitment remain on track.