India's energy demand increased by 3.7% year-on-year in 2016, but imports increased by 5.7%, led by LNG, LPG and gasoline. While coal production increased in the past two years, domestic production of oil and gas either stagnated or declined. In 2016, the government mentioned an ambitious target of a 10% reduction in India's oil import dependency by 2022. In this insight, we ask our Commodity Analytics team on how the various energy sectors have performed in 2016 and comment on what lies ahead in 2017. Will India be able to accelerate policy reforms that provide market-driven pricing and attract investment to boost domestic hydrocarbon production? Can India take necessary measures in 2017 to improve energy efficiency and increase renewable energy supply faster than conventional energy supply? Will the Goods and Service Tax regulation outweigh the downturn imposed by currency demonetisation?
WM: India made a mark in 2016 by adding 4.7 GW solar capacity. Do you think the momentum will continue? How will the overall renewables sector perform in 2017?
WM: The government launched a revival scheme, Ujwal DISCOM Assurance Yojana (UDAY), to rescue the bankrupt distribution companies and help revive demand. What is the status of the scheme? How successful has it been since its launch in Q4 2015?