Abstract
The eradication of poverty and prosperity depend upon the economic development of a nation which in turn is dependent on an adequate and continuous supply of energy sources. Hence, energy is the lifeline of economic development. The rise of South Asia in general and India in particular as a force on the economic scene is now widely acknowledged. India’s growing population and expanding economy with the shift in focus from agriculture to the manufacturing and services sectors have led to an increase in energy intensity which has resulted in an unprecedented demand for energy sources. Though India is diverse in its energy endowments and requirements, its need for clean and stable supplies of energy at sustainable prices will rise in tandem with its development graph. According to projections, India’s primary energy demand is expected to grow from 570 million tonnes of oil equivalent (mtoe) to over 1200 mtoe by 2030. Moreover, its declining oil reserves, uncertainty over its future oil supply, fluctuations in global oil prices and the growing concerns over climate change have further increased its apprehensions with regard to energy security.