Report on industry strategies
A Government-constituted High-Level Committee (HLC) has looked into merger, acquisition and consolidation of Oil & Gas PSUs and the Joint Ventures.
It has also explored the need and possibility of formation of new entity dealing with oil services in the country and supply of qualified manpower to Oil & Gas sector around the world.
The HLC has submitted a report to the Petroleum & Natural Gas Minister Dharmendra Pradhan on 21 May 2019.
The Committee has recommended short term, medium term and long-term strategies in the report, clearly bringing out the strategy to reduce the import dependency of the nation after interviewing industry executives.
Ministry of Petroleum & Natural Gas said it will consider the recommendations submitted by the Committee while formulating policies in the said matter.
The HLC was formed to examine the issues relating to preparation of action plan to create synergy among R&D Centres of Oil & Gas PSUs; tax issues and ways to benefit from GST by the Oil & Gas PSUs.
The HLC, consisting of Dr. Anil Kakodkar, eminent Scientist and Sidharth Pradhan, an expert on financial and tax issues, is focused on Energy Security, a key strategic priority for India.
During 2018, India consumed 204.92 MMT petroleum products and 58.64 BCM natural gas whereas the domestic production of crude oil and natural gas has almost stagnated.
The import dependency of crude oil and LNG during the year was 82.59% and 45.89%, respectively, which is likely to increase in days to come.
During 2018, petroleum import (Rs.7,028.37 billion) was 23.42% of total gross import (Rs.30,010.2 billion) of the nation.
India’s projected oil demand is going to grow at CAGR 4% during 2016-2030 against the world average of 1% though the projected oil demand will be much lower as compared to the US and China.
“India is thus at very precarious situation and to secure its energy needs in sustainable manner, out-of-box solutions are needed. R&D is going to play an important role in the process,” said Petroleum & Natural Gas Ministry in a release on 21 May 2019. fiinews.com