Resource Allocation and Pricing

India is home to one-sixth of the world population however its per capita energy consumption of 585 kilograms of oil equivalent (kgoe) in 2009 is much below the global average of 1,839 kgoe. The stage however, is set for change; with continued economic growth and better living standards the per capita energy consumption in India is expected to be more than double by 2031-32 to around 1,124 kgoe, though this will still be lower than the 2009 world average of 1,839 kgoe.

In the last five years, India has averaged a growth rate of 8% and the demand for energy has been putting pressure on its supply sources. It is an established fact that if India continues to grow at 8% or so in the coming years a higher than average demand for energy will persist. In such a scenario, it is expected that there will be continued pressure on supply sources in the next decade largely driven by increasing urbanization and increasing demand for consumption.