People across world would have been surprised the way India efficiently handled Hormuz disruption: Former ONGC Director

New Delhi [India], June 29 (ANI): India’s ability for coordinated response during an impending crisis will help keep domestic energy supply stable even amid high import dependence, Sushma Rawat, former Director, Exploration, ONGC, has said, adding that the country’s handling of the Strait of Hormuz disruption offers a template for any future shock.

“India would almost come at nine out of 10 if you rate global government performance during the crisis,” Sushma Rawat told ANI in a conversation on India’s energy supply management.

“It’s really credible the way the Government of India and the Ministry of Oil and Natural Gas has handled this,” she added, pointing to the country’s multilayered demand, vast population and logistically challenging geography.

Despite 85 per cent crude import dependence and 80-90 per cent of LNG coming through the Strait of Hormuz, mainly from Qatar, India saw only “two to three percent” initial price impact versus “40 percent” increases in the US and Europe, Rawat said. “That buffer which the Indian government took in terms of financial loss and under recoveries… saved the common man from difficulties.” PSUs “absorbed the losses,” she noted, adding that supply disruptions were “almost negligible” and black marketing was “nipped in the bud.”

On LPG, Rawat referred to rapid rebalancing. “A 30 per cent reduction for industrial use… channeling it towards domestic supply,” plus pricing and a fast-track shift to PNG in metros.

She said new pipelines have been laid and steps have been taken against double connectivity freeing cylinders for logistically difficult areas.

Rawat said that more than 50 per cent of the outcome was due to diplomacy, because “if you are good at geopolitics you can ensure your source from anywhere.”

India, she said, did not take sides and stressed that “the world has to be ensured supply of energy because that is a requirement for everyone.”

The approach — leveraging ties with Russia, the Gulf countries, and others — and efforts by the government ensured vessels intermittently continued passing through Hormuz, she said.

Rawat said India is diversifying sources, accelerating domestic gas use, and expanding PNG to reduce exposure.

“A lot of people across the world would have been very surprised… the way India handled its energy disruption,” she said, adding that “decades of friendship building” underpin today’s resilience. (ANI)

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