The two biggest state-owned oil companies, ONGC and Oil India, dominate the country's upstream gas sector, the report said.

According to EIA, India became the world's sixth largest liquefied natural gas importer in 2011. Indian companies have begun investing in new regasification facilities to meet rising demand.

Noting that Coal is India's primary source of energy, it said the country has the world's fifth largest coal reserves.

The State retains a near-monopoly on the coal sector. The power sector makes up the majority of coal consumption.

India has 211 gigawatts of installed electricity capacity, mostly in coal-powered plants.

Because of insufficient fuel supply, the country suffers from a severe shortage of electricity generation, leading to rolling blackouts, the report said.

The Indian government may not be able to deliver secure supplies to meet demand because of fuel subsidies, increasing import dependency, and inconsistent energy sector reform, the report said.

It said some parts of the energy sector, such as coal production, remain relatively closed to private and foreign investment.

In early 2013, India's petroleum minister Veerappa Moily announced that the ministry would work on an action plan to make India energy independent by 2030, the report said.

This would be through increased hydrocarbon production, unconventional resources such as coalbed methane and shale, foreign acquisitions by domestic Indian companies, and reduced subsidies on motor fuels.

"These actions either increase India's energy supply or lower demand," the report said.