Government Initiatives to Promote Clean Energy Alternatives to Kerosene
POWER & RENEWABLE ENERGY

Government Initiatives to Promote Clean Energy Alternatives to Kerosene

The Government of India has undertaken several measures to phase out kerosene usage and promote clean energy alternatives for both cooking and lighting purposes.

Key Developments in Kerosene Reduction Retail selling price of PDS Kerosene has been maintained at NIL under-recovery level across India since 1st March 2020. States and Union Territories (UTs) can draw one month’s quota of PDS Kerosene at non-subsidised rates per financial year for special needs such as natural calamities, religious functions, fisheries, and yatras.

To reduce kerosene dependency, the Government implemented a Direct Benefit Transfer for Kerosene (DBTK) scheme from 2015-16 to 2019-20, offering cash incentives to states voluntarily surrendering their PDS Kerosene allocation. As a result, 13 states have become kerosene-free as of FY 2023-24.

Global Leadership in Clean Energy Transition India is a founding member of the International Solar Alliance (2015) and the Global Biofuel Alliance (2023). Hosted a Ministerial Roundtable on Clean Cooking during India Energy Week 2025, sharing insights from the Pradhan Mantri Ujjwala Yojana (PMUY) with the Global South. Multi-Pronged Strategy for Clean Energy Promotion

The Government has adopted a comprehensive strategy that includes: Demand Substitution – Promoting natural gas as a fuel/feedstock to transition towards a gas-based economy. Renewable & Alternative Fuels – Encouraging the use of ethanol, second-generation ethanol, compressed bio-gas (CBG), and biodiesel. Energy Efficiency & Conservation – Implementing refinery process improvements and enhancing energy conservation measures. Sustainable Alternative Towards Affordable Transportation

The Government of India has undertaken several measures to phase out kerosene usage and promote clean energy alternatives for both cooking and lighting purposes. Key Developments in Kerosene Reduction Retail selling price of PDS Kerosene has been maintained at NIL under-recovery level across India since 1st March 2020. States and Union Territories (UTs) can draw one month’s quota of PDS Kerosene at non-subsidised rates per financial year for special needs such as natural calamities, religious functions, fisheries, and yatras. To reduce kerosene dependency, the Government implemented a Direct Benefit Transfer for Kerosene (DBTK) scheme from 2015-16 to 2019-20, offering cash incentives to states voluntarily surrendering their PDS Kerosene allocation. As a result, 13 states have become kerosene-free as of FY 2023-24. Global Leadership in Clean Energy Transition India is a founding member of the International Solar Alliance (2015) and the Global Biofuel Alliance (2023). Hosted a Ministerial Roundtable on Clean Cooking during India Energy Week 2025, sharing insights from the Pradhan Mantri Ujjwala Yojana (PMUY) with the Global South. Multi-Pronged Strategy for Clean Energy Promotion The Government has adopted a comprehensive strategy that includes: Demand Substitution – Promoting natural gas as a fuel/feedstock to transition towards a gas-based economy. Renewable & Alternative Fuels – Encouraging the use of ethanol, second-generation ethanol, compressed bio-gas (CBG), and biodiesel. Energy Efficiency & Conservation – Implementing refinery process improvements and enhancing energy conservation measures. Sustainable Alternative Towards Affordable Transportation

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