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From Kerosene to Clean Energy: India’s Push for Sustainable Solutions

Written by: Sachin GuptaUpdated on: Mar 18, 2025, 10:31 AM IST
Kerosene has traditionally been used for lighting in rural areas but with the introduction of initiatives like Saubhagya and DDUGJY.
From Kerosene to Clean Energy: India’s Push for Sustainable Solutions
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India has made significant achievements in its journey toward ensuring clean energy access and promoting sustainable cooking solutions for its citizens. A key milestone in this endeavour was the introduction of the Public Distribution System (PDS) Kerosene pricing and various initiatives aimed at reducing reliance on kerosene while enhancing access to cleaner alternatives.

Kerosene Pricing and PDS Allocation

Since March 1, 2020, the retail selling price of PDS Kerosene has been maintained at a “NIL under-recovery” level across the country. This decision is part of the government’s efforts to rationalise the use of kerosene, a known pollutant. Kerosene, often used for cooking and lighting, is distributed under the Public Distribution System (PDS), with special allocations provided to states and Union Territories (UTs) for special needs, such as natural calamities, religious functions, fisheries, and yatras.

The government’s forward-thinking policies also empower states to draw one month’s quota of PDS Kerosene at non-subsidized rates during each financial year to meet these special needs. Between 2015 and 2020, the government incentivised states through the Direct Benefit Transfer for Kerosene (DBTK) scheme to voluntarily surrender their PDS kerosene allocations. As of 2023-24, 13 states have successfully transitioned to a Kerosene-free status.

Clean Energy Leadership and International Cooperation

India is actively leading global initiatives to support the clean energy transition. As one of the founding members of the International Solar Alliance (ISA) in 2015 and the Global Biofuel Alliance in 2023, India has shown a strong commitment to adopting clean energy solutions. This is evident from the discussions held during India Energy Week 2025, where India hosted a Ministerial Roundtable on Clean Cooking to share lessons from the Pradhan Mantri Ujjwala Yojana (PMUY) and address challenges faced by the Global South.

Shifting to Cleaner Lighting Alternatives

Kerosene has traditionally been used for lighting in rural areas, but with the introduction of initiatives like Saubhagya (Pradhan Mantri Sahaj Bijli Har Ghar Yojana) and Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), India has nearly achieved universal electricity access. These efforts have effectively eliminated the need for kerosene lamps for lighting, offering a cleaner and more sustainable alternative for millions of households.

Clean Cooking with LPG

One of the most significant steps toward ensuring clean energy access for all has been the launch of Pradhan Mantri Ujjwala Yojana (PMUY) in May 2016. PMUY aimed to provide free LPG connections to poor households, eliminating the need for harmful cooking methods like using firewood or coal.

In addition to providing free LPG connections, the government also introduced targeted subsidies to ensure sustained usage of LPG. In May 2022, the government started offering a subsidy of ₹200 per 14.2 kg cylinder for up to 12 refills per year for PMUY beneficiaries. In October 2023, the subsidy was increased to ₹300 per 14.2 kg cylinder, making LPG even more affordable. As a result, PMUY consumers can access LPG cylinders at an effective price of ₹503 per cylinder (in Delhi). More than 10.33 crore beneficiaries are now able to avail of these benefits across the country.

Conclusion

India’s commitment to clean energy and clean cooking solutions is clear. With initiatives like PMUY, the push for renewable fuels, and the growing focus on sustainability, India is poised to continue its leadership in clean energy adoption. Through continued innovation and government support, the country is on track to achieve a cleaner, healthier, and more sustainable future for all its citizens.

 

 

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Mar 18, 2025, 10:28 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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