Nithin Kamath Flags LPG Crisis Risk, Says India Uses Less Than 1% Of Biogas Potential Amid Import Dependence

New Delhi: Nithin Kamath, co-founder and CEO of Zerodha, has raised concerns over India’s heavy dependence on energy imports amid the ongoing crisis in West Asia. He said the situation shows how vulnerable India is, as most of its crude oil and natural gas, including LPG and CNG, are imported.

Push For Biogas As Alternative

Kamath suggested that India should use this crisis as an opportunity to focus on alternatives like biogas. He pointed out that biogas can be produced locally and is also environmentally friendly. Despite having strong potential, India is currently using less than 1% of its biogas production capacity.

Huge Untapped Potential

According to data shared by Kamath, India can produce around 62 million tonnes of biogas every year. However, only a very small portion of this is being used. He believes that increasing the use of biogas can help reduce dependence on imports and improve long-term energy security.

Risk From Global Supply Disruptions

Kamath highlighted that more than half of India’s LNG imports pass through the Strait of Hormuz, making the country highly exposed to disruptions. If supply is affected, industries may face up to 20% cuts, while households may have to pay higher prices.

Limited Gas Reserves Add Pressure

India currently has only 1–2 weeks of LNG reserves at its regasification terminals. Unlike crude oil, there is no large strategic stockpile of gas. This means the country depends heavily on regular shipments, making the system sensitive to global events.

Investment And Policy Needed

Kamath said that while some startups backed by Zerodha’s Rainmatter initiative are working to promote biogas, the scale of investment needed is much larger. He stressed that strong policy support and large capital investments are required to make a real impact.

Opportunity To Save Import Costs

The data also suggests that India could save up to $29 billion over six years by replacing just 20% of imported gas with locally produced biogas. Kamath emphasised that efforts should continue even after the crisis to build long-term resilience.