In a sweeping set of policy announcements and investment commitments, the Government of India has laid out a robust blueprint for agriculture and energy transformation aimed at enhancing productivity, securing energy needs, and boosting infrastructure. From the launch of a ₹24,000 crore-per-year agriculture scheme to a planned ₹2.3 lakh crore surge in thermal power investments and aggressive renewable energy targets, the country is positioning itself to balance sustainability with growth. The Union Cabinet and the Ministry of Petroleum & Natural Gas unveiled a series of ambitious measures this week, underlining Prime Minister Narendra Modi’s commitment to a self-reliant and energy-resilient India.
Flagship Agricultural Overhaul: PMDDKY to Transform Farming in 100 Districts
The Cabinet, chaired by Prime Minister Modi, approved the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) — a landmark initiative with an annual outlay of ₹24,000 crore, beginning FY26. Targeting 100 districts identified based on low agricultural productivity, low cropping intensity, and limited credit disbursement, the scheme seeks to uplift India’s farming ecosystem through a unified framework.
Modeled on the success of NITI Aayog’s Aspirational Districts Programme, PMDDKY will converge 36 central schemes into a single delivery structure to improve farm productivity, promote crop diversification, and bolster irrigation and post-harvest infrastructure at the block and panchayat levels.
Ashwini Vaishnaw, Union Minister for Information & Broadcasting, stated that states will act as core partners and implementation will be supported by dedicated technology platforms and constant monitoring. “About 1.7 crore farmers are expected to benefit in six years. District selection and implementation will begin in August,” he said.
Green Energy Push: NTPC, NLCIL Get Boost for Renewable Ambitions
Simultaneously, the Cabinet granted enhanced financial autonomy to two state-run energy giants — NTPC and NLC India Ltd (NLCIL) — to accelerate their green energy ventures. NTPC will now be able to invest up to ₹20,000 crore through its renewable subsidiary NTPC Green Energy Ltd, up from the earlier cap of ₹7,500 crore. The move will enable faster capital flow into NTPC’s renewable projects, aiding its target of 60 GW renewable energy capacity by 2032.
In parallel, NLCIL received exemptions from standard investment caps, allowing it to pump ₹7,000 crore into NLC India Renewables Ltd (NIRL). This will help the company aim for 10 GW capacity by 2030, bypassing the 30% net worth ceiling and easing procedural bottlenecks.
The announcements come as India marks a major milestone — achieving 50% of its power generation capacity from non-fossil fuel sources, five years ahead of its 2030 commitment.
Thermal Power’s Revival: ₹2.3 Lakh Crore Investment Surge by 2028
While renewables are on the rise, thermal power — a reliable base-load source — is witnessing a major comeback. According to Crisil Ratings, India is projected to invest ₹2.3 lakh crore in thermal power between FY25 and FY28, nearly double the investment in the previous three years.
This resurgence is being driven by growing energy demand and the government’s plans to add at least 80 GW of thermal capacity by FY32. Of this, 60 GW is already in the pipeline, with private players accounting for 19 GW — a substantial shift, as private investment in the sector stood at only 7–8% previously.
Most of these upcoming plants are brownfield expansions, which present fewer implementation hurdles. However, experts warn that bottlenecks in equipment manufacturing — particularly turbines and boilers — may impact execution timelines.
Energy Security & Exploration: India Charts Upstream Expansion
At the Urja Varta 2025 conclave, Petroleum Minister Hardeep Singh Puri laid out India’s long-term energy security and upstream exploration strategy. The country has expanded its crude sourcing from 27 to 40 nations to hedge against geopolitical volatility, and remains committed to market-stabilizing strategies, including structured imports from Russia under global price caps.
Minister Puri highlighted ongoing policy reforms to attract private players in oil and gas exploration — such as the revised Oilfields Regulation and Development Act, Model Revenue Sharing Contracts (MRSC), and updated Petroleum & Natural Gas (PNG) rules — aimed at simplifying approvals, improving transparency, and unlocking vast offshore basins like the Andaman Sea, which he compared to the prolific Guyana Basin.
A revised seismic database, streamlined approvals, and new MoUs with global players like bp and ONGC underscore India’s effort to become a globally competitive exploration frontier.
States as Growth Anchors: ₹30–35 Lakh Crore Energy Investment by 2035
An Inter-Ministerial Round Table at Urja Varta brought together representatives from 22 States and UTs. Addressing the gathering, Puri emphasized that states will play a central role in enabling India’s energy vision. “India contributed 16% to the global oil demand increase over the past five years and is expected to drive 25% of future growth till 2045,” he said.
He added that over ₹4 lakh crore has already been invested in energy infrastructure over the last decade and another ₹30–35 lakh crore is expected by 2035. He urged states to proactively facilitate energy projects, highlighting that streamlined processes at the state level could serve as national models.
Conclusion: A Balanced Energy-Agriculture Blueprint for India’s Future
From strengthening agricultural foundations in underserved districts to balancing clean and conventional energy pathways, India’s recent policy push reflects a strategic recalibration. With ₹55 lakh crore in anticipated investments across agriculture, renewables, and thermal power, India is cementing its position as a global energy leader and ensuring inclusive rural development under a unified national vision.
