Pradhan updates Parliament on energy
The Government has accepted a report on reducing energy import by 10% by 2021-22 by boosting indigenous hydrocarbon output and promoting energy efficiency, Parliament was told on 1 July 2019.
The report envisages five-pronged strategy, broadly comprising of increasing domestic production of oil and gas, promoting energy efficiency and conservation measures, giving thrust on demand substitution, capitalizing untapped potential in biofuels and other alternate fuels/renewables and implementing measures for refinery process improvements.
The Ministry is working in collaboration with various Central Government Ministries on the matter, Petroleum & Natural Gas Minister Dharmendra Pradhan said in a written reply to the Lok Sabha.
The report “Preparing a roadmap to reduce the dependency on import in energy by 10% by 2021-22” was by a Committee constituted by the Government.
The Government has taken several steps to enhance exploration & production of oil and gas in the country which include:
Policy for Relaxations, Extensions and Clarifications under Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries;
Discovered Small Field Policy, Hydrocarbon Exploration and Licensing Policy, Policy for Extension of Production Sharing Contracts;
Policy for early monetization of Coal Bed Methane;
Setting up of National Data Repository, Appraisal of Unappraised areas in Sedimentary Basins, Re-assessment of Hydrocarbon Resources;
Policy framework to streamline the working of Production Sharing Contracts in Pre-NELP and NELP Blocks;
Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas;
Policy framework for exploration and exploitation of Unconventional Hydrocarbons under existing Production Sharing Contracts, Coal Bed Methane contracts and Nomination fields.
In February 2019, the Government had approved major reforms in exploration and licensing policy to enhance exploration activities, attract domestic and foreign investment in unexplored/unallocated areas of sedimentary basins and accelerate domestic production of oil and gas from existing fields.
The policy reforms, inter alia, aims to boost exploration activities with greater weightage to work programme, simplified fiscal and contractual terms, bidding of exploration blocks under Category II and III sedimentary basins without any production or revenue sharing to Government, early monetization of discoveries by extending fiscal incentives, incentivizing gas production including marketing and pricing freedom, induction of latest technology and capital, more functional freedom to National Oil Companies for collaboration and private sector participation for production enhancement methods in nomination fields, streamlining approval processes and promoting ease of doing business including electronic single window mechanism.
The Government is also promoting the usage of environment friendly transportation fuel, i.e. CNG by expanding the coverage of City Gas Distribution (CGD) network in the country.
The Government has also taken a number of initiatives to encourage the use of alternative fuels like ethanol and bidiesel through Ethanol Blending in Petrol (EBP) Programme and Bio-diesel blending in diesel.
The Government has formulated a National BioFuel Policy 2018 to boost availability of biofuels in country. fiinews.com