<\/p>\n
Iran declared the closure of the Strait of Hormuz on 2 March.<\/span><\/p>\n Brent crude surged from $70\u201372 to over $100 per barrel, touching $119 day trading. Over 1.6 million tonnes of crude, 320,000 tonnes of LPG, and 200,000 tonnes of LNG were stranded at sea.<\/span><\/p>\n This proved to be a test for India’s energy security. India invoked the Essential Commodities Act.<\/span><\/p>\n \u00a0<\/strong><\/span><\/p>\n Statistical Picture<\/u>: –<\/span><\/p>\n India’s energy security requires a holistic review (alternative sources, alternative supply routes, enhanced storage capacity, accelerated transition to alternative energy, and a serious push for indigenous capacity).<\/span><\/p>\n \u00a0<\/strong><\/span><\/p>\n Energy Security Mitigation Dynamics<\/u><\/strong><\/span><\/p>\n India’s energy strategy faces three competing pressures:-<\/span><\/p>\n India’s official position: “Ensuring the energy security of 1.4 billion Indians is the ultimate priority. Diversifying energy sourcing is in keeping with objective market conditions and evolving international dynamics.”<\/em><\/span><\/p>\n This formula is precisely right. It achieves the desired policy outcome, i.e., diversification without accepting foreign dictation over Indian procurement, thereby preserving strategic autonomy.<\/span><\/p>\n <\/p>\n Supplier Diversification<\/u><\/strong><\/span><\/p>\n Over two decades, India has expanded its supplier base (from 27 to over 40 countries).\u00a0 However, supply from West Asia (Iraq, Saudi Arabia, Kuwait, UAE) continues to dominate, with imports from these countries accounting for over two-thirds of imports.<\/span><\/p>\n Russia moved from 1% in 2017 to a peak of 36% in 2024. This was driven by the availability of Urals crude at a lower price, post-sanctions. By January 2026, Russia’s share contracted to 21.2<\/span><\/p>\n The optimal suggested portfolio (around four clusters): –<\/span><\/p>\n The discipline across all clusters: no single source should exceed 25\u201330% of total imports.<\/span><\/p>\n \u00a0<\/strong><\/span><\/p>\n Shipping Capacity<\/u><\/strong>.<\/strong><\/span><\/p>\n \u00a0<\/strong><\/span>In the present crisis, Iran is selectively permitting ships to pass based on their flag. Indian-flagged vessels were advantageous, whereas foreign-flagged tankers carrying Indian cargo had no such benefit.<\/span><\/span><\/p>\n Shipping Corporation of India operates approximately. 70 vessels. India imports over 5 million barrels per day. The mismatch is stark.<\/span><\/p>\n A National Tanker Fleet Expansion Programme is needed, targeting at least 150 India-flagged crude carriers by 2035.<\/span><\/p>\n A pipeline is another alternative, but it is vulnerable to enemy attacks during hostilities.<\/span><\/p>\n <\/p>\n Transit Security<\/u><\/strong><\/span><\/p>\n The safety of maritime assets in transit has become a necessity.<\/span><\/p>\n Operation Sankalp <\/strong>is a security operation launched by the Indian Navy in June 2019 to ensure the safe passage of Indian-flagged merchant vessels through the Gulf region (Strait of Hormuz, Gulf of Oman, and Gulf of Aden). It has evolved from monitoring into active escort and deterrence. Indian naval destroyers, along with surveillance aircraft and helicopters, now accompany commercial vessels.<\/span><\/p>\n Suggested solutions to enhance security: –<\/span><\/p>\n <\/p>\n Storage<\/u><\/strong><\/span><\/p>\n \u00a0<\/strong><\/span><\/p>\n The Eastern Seaboard Infrastructure<\/u><\/strong><\/span><\/p>\n India’s energy import infrastructure is overwhelmingly concentrated along the western coast. Building robust eastern seaboard energy infrastructure is an immediate national security requirement.<\/span><\/p>\n Suggested priorities: –<\/span><\/p>\n The strategic logic is simple. To receive Russian crude via Chennai-Vladivostok, Australian LNG via Dhamra, and Brazilian oil via Paradip.<\/span><\/p>\n <\/p>\n Alternative Energy (Non-Fossil)<\/u><\/strong><\/span><\/p>\n India crossed a milestone in December 2025. The non-fossil fuel installed capacity reached 51.93% of the total. Renewable energy capacity tripled over a decade to 253.96 GW.<\/span><\/p>\n The Statistical Reality<\/u>. Peak electricity demand grows at a CAGR of 5.58%, requiring total installed capacity to expand from approximately 520 GW today to 1,121 GW. Coal runs continuously at 85%+ capacity factors. It will still contribute 51% of electricity generation till 2035. Solar energy generation is restricted by daylight. Wind energy generation is intermittent. Depending upon the wind conditions. These can be considered a bonus and are not guaranteed.<\/span><\/p>\n A formalised action plan is necessary to enhance the use of alternative energy sources.<\/span><\/p>\n Another Vulnerability<\/u>. India is dependent on Chinese-controlled critical mineral supply chains for solar panels, EV batteries, and wind turbine components. The National Critical Mineral Mission is the right response. The domestic manufacturing and allied-country sourcing (Australia) must be progressed in parallel.<\/span><\/p>\n <\/p>\n Five Priorities<\/u><\/span><\/strong>: –<\/span><\/p>\n <\/p>\n BOTTOM LINE<\/u><\/strong><\/span><\/p>\n The lessons from the 2026 crisis are glaring.\u00a0<\/strong><\/span>Institutional will is required to implement them.\u00a0<\/strong><\/span>The direction is right.\u00a0<\/em><\/strong><\/span>\n
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