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, said Amitabh Kant, former CEO of NITI Aayog and India's former G20 Sherpa, in an exclusive conversation with ANI.
Early Policy Action Prevented Chaos
India imports almost 86 per cent of its fossil fuel and nearly 60 per cent of its LPG. In any other country this would have created chaos and a complete breakdown of the economy, Kant said. He added that India handled the crisis 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, Kant said, which ensured availability while keeping prices stable. While the cost was 1600 rupees, 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 government, 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.
Diplomacy and Diversification Secured Supply
Supply was secured through diplomacy and diversification. Despite the crisis, there were 12 Indian vessels which came through the Strait of Hormuz, reflecting great diplomacy at work, Kant 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, and India's LPG production actually greatly enhanced.
Digital Tools Prevented Leakage
Kant 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, and no consumer was harassed, he said.
Contrast with Global Trends
Kant said the outcome contrasted sharply with global trends. In the rest of the world, pandemonium and inflation took place, and every single citizen was hit. In India's case, the government took the responsibility. He credited very concerted inter-ministerial functioning, stating that 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.
