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In this paper, conventional and renewable energy sources for sustainable development of energy sector in India are evaluated from multiple perspectives including economic, technical, social, environmental, political, and flexible criteria. An integrated Shannon's entropy multi-criteria decision making (MCDM) method has been used for the evaluation and assessment of these sources. Thermal, gas, nuclear, solar, wind, biomass, and hydro energy options are used as the alternatives in the decision model. Shannon's entropy method is applied to determine the weights of decision criteria, and fuzzy analytical hierarchy process (AHP) method is applied to prioritize sustainable energy alternatives. The output of the proposed model was compared with six different fuzzy MCDM techniques for the establishment of correlation index. Solar energy was shown to be particularly well suited for India followed by wind and hydro energy sources. Later, the study has developed fourteen scenarios, considering the first five sustainable energy sources (solar, wind, hydro, biomass, and gas power), to evaluate the optimal energy mix scenario for the sustainable development of energy sector in India. An optimal energy mix scenario carries the heroic development of solar, wind, and hydro energy with cross border import-export facility for the time frame of the year 2030. • Reviewed the overview, challenges and development of Indian energy sector. • Developed integrated Shannon entropy fuzzy MCDM approach. • Evaluated the most sustainable energy alternatives in India. • Results validated with six fuzzy MCDM approaches and correlation coefficients. • Evaluated the optimal energy mix scenario in India for the time frame of 2030. [ABSTRACT FROM AUTHOR]