India’s data centres are expanding, and with them comes a quiet demand for reliable power. A fleet of older, gas-based plants—often neglected and underutilised—could find a renewed role. But whether they actually power Digital India hinges on unglamorous realities: policy signals, gas and power pricing, and political will to make the economics work.
India’s gas expansion is constrained by a rigid, outdated pipeline and market setup, even as Europe advances with flexible, market-led network models. The Entry-Exit framework is touted as a potential turning point for clearer pricing and competition, but success depends on whether policymakers will implement reforms boldly and consistently across the system.
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India’s crude oil and natural gas output kept falling in 2025-26, extending an 11-year slide as ageing fields drain production and new discoveries fail to replace losses. The result: rising import dependence. Even with policy reforms, foreign investment remains limited and fears over policy stability are discouraging exploration needed to reverse domestic decline.
KG-98/2, once celebrated after a 2002 Reliance Industries gas discovery, has spent years falling short of expectations and getting tangled in controversies. Now ONGC is pushing to revive the field’s promise, aiming to regain momentum after long delays. The long-awaited ignition marks a potential turning point in India’s domestic energy narrative.
India’s fertiliser production fell nearly a quarter in March, driven by disruptions to imported natural gas linked to the Middle East conflict. Since gas is a core input for producing urea—the key fertiliser powering much of India’s agriculture—the shock highlights how directly global energy disruptions can ripple into farm supply and food costs.
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