Press Release
Jaipur, Rajasthan, January 28, 2026:
As India approaches the Union Budget 2026–27, the stakeholders in the energy sector have demanded a set of fiscal and regulatory measures expected to boost local production, speed up the implementation of smart metering, and increase natural gas usage. Industry participants believe that targeted tax rationalisation and policy support could play a key role in efficient performance, lowering expenses, and aligning with the long-term energy change objectives of the country.
India continues to be heavily dependent on imports, as the country imports more than 80 percent of its crude oil needs. As the energy demand is set to grow consistently in the next few years, the industry believes that Budget 2026 has been an important opportunity to resolve the structural issues and to spur investment in upstream, midstream, and downstream sectors.
The industry players feel that favourable tax policies and incentives would help in the faster implementation of smart meters, especially in the city and semi-urban regions. The increased use of digital solutions for metering also coincides with the broader governance and digital infrastructure reforms to enhance the accountability and operational efficiency of the power sector.
Tax relief has also been sought for pipeline construction materials, compressed natural gas (CNG), and biogas, along with the removal of the existing customs duty on liquefied natural gas imports.
Upstream operators have made renewed calls for the reduction of cess on crude oil, the tax holidays on the new exploration blocks, and the exclusion of exploration operations from GST. The sector is currently managed under different contractual patterns, which have different royalty and cess arrangements. It is perceived that harmonisation of these frameworks will make compliance more complex and level the playing field of investment.
In a bid to enforce cleaner household power options, stakeholders have emphasized the requirement to urge consumers to move away from LPG cylinders to piped natural gas connections. Yashraj Khaitan, Founder and CEO, Polaris Smart Metering, said, “We recommend that the same incentives given today to customers for LPG cylinders should be extended to customers adopting piped gas connections from CGD companies. This will help the government eliminate long term expenditure on LPG cylinders and transition customers to a hassle-free and more cost-effective solution.”
Overall, the energy sector suggests that the balanced strategy of rationalisation of taxes and investments in infrastructure and the use of technology may assist in enhancing the energy system in India, decreasing the level of dependency on imports, and promoting the growth of the economy in the long term.
