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Union Budget 2026 has reinforced India’s push towards decarbonisation, crude diversification and long-term energy security, Petroleum Minister Hardeep Singh Puri told CNBC-TV18, highlighting major steps that support both economic growth and the energy transition.
Puri said the Budget must be seen as part of a broader framework that has helped sustain India’s strong growth trajectory. “A budget is a defining instrument for overall economic growth,” he said, pointing to recent GDP expansion of over 7% and India’s rise from a $2 trillion to a $4 trillion economy. He added that “energy is the lifeline of an economy”, making policy support for the sector critical.
Among the key measures for his ministry, Puri flagged the government’s ₹20,000 crore allocation for carbon capture, utilisation and storage (CCUS), which will be open to industries such as steel, power and refineries. He said this is a step that refineries can “immediately take forward” as India sharpens its decarbonisation agenda.
Explaining why CCUS is important, Puri underlined that his ministry’s work now goes beyond traditional oil and gas. “I am not just the petroleum and natural gas minister, but my work is largely characterised by energy transition,” he said. He also highlighted India’s progress on biofuels, noting that blending has risen sharply from 1.4% to 20% between 2014 and 2025. The country achieved its 20% blending target six years ahead of the original 2030 deadline.
On energy security, Puri stressed that diversification of crude imports has become a core strategy under Prime Minister Narendra Modi’s policies. India, he said, has expanded its sourcing base significantly. “We used to import from 27 countries, we are now importing from 41,” he told CNBC-TV18.
Responding to questions on Venezuela, Puri said India has been buying oil from the country for a long time, and recent commentary has only reiterated an ongoing trade relationship. He noted that Venezuelan crude is heavy, and “two or three of our refineries are specifically configured to deal with that heavy crude.” He also pointed out that Venezuela has massive reserves, though underinvestment has limited production to around a million barrels a day.
Puri added that India continues to explore energy partnerships across geographies, including the Western Hemisphere. He said Canada has shown interest in supplying both gas and crude, and India already has investments there through
Indian Oil Corporation. Referring to new liquefaction plans in British Columbia, Puri said these developments could help transport fuel to India or serve global markets.
Also Read | India maintains status quo on Green Energy Corridor funding, allocates ₹600 crore in budget
Overall, Puri said India’s energy strategy is progressing on both transition and supply resilience. In his words, “our energy story both on transition and on terms of overall providing for navigation amongst the global turmoil is a good story.”
Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget on February 1, with several measures aimed at supporting clean energy, domestic capability and diversification of India’s fuel basket as the country balances growth with decarbonisation goals.
Puri said the Budget must be seen as part of a broader framework that has helped sustain India’s strong growth trajectory. “A budget is a defining instrument for overall economic growth,” he said, pointing to recent GDP expansion of over 7% and India’s rise from a $2 trillion to a $4 trillion economy. He added that “energy is the lifeline of an economy”, making policy support for the sector critical.
Among the key measures for his ministry, Puri flagged the government’s ₹20,000 crore allocation for carbon capture, utilisation and storage (CCUS), which will be open to industries such as steel, power and refineries. He said this is a step that refineries can “immediately take forward” as India sharpens its decarbonisation agenda.
Explaining why CCUS is important, Puri underlined that his ministry’s work now goes beyond traditional oil and gas. “I am not just the petroleum and natural gas minister, but my work is largely characterised by energy transition,” he said. He also highlighted India’s progress on biofuels, noting that blending has risen sharply from 1.4% to 20% between 2014 and 2025. The country achieved its 20% blending target six years ahead of the original 2030 deadline.
On energy security, Puri stressed that diversification of crude imports has become a core strategy under Prime Minister Narendra Modi’s policies. India, he said, has expanded its sourcing base significantly. “We used to import from 27 countries, we are now importing from 41,” he told CNBC-TV18.
Responding to questions on Venezuela, Puri said India has been buying oil from the country for a long time, and recent commentary has only reiterated an ongoing trade relationship. He noted that Venezuelan crude is heavy, and “two or three of our refineries are specifically configured to deal with that heavy crude.” He also pointed out that Venezuela has massive reserves, though underinvestment has limited production to around a million barrels a day.
Puri added that India continues to explore energy partnerships across geographies, including the Western Hemisphere. He said Canada has shown interest in supplying both gas and crude, and India already has investments there through
Also Read | India maintains status quo on Green Energy Corridor funding, allocates ₹600 crore in budget
Overall, Puri said India’s energy strategy is progressing on both transition and supply resilience. In his words, “our energy story both on transition and on terms of overall providing for navigation amongst the global turmoil is a good story.”
Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget on February 1, with several measures aimed at supporting clean energy, domestic capability and diversification of India’s fuel basket as the country balances growth with decarbonisation goals.
