2019 – Posted in: Daily News – Tags: India's import

REPORT ON “REDUCING OIL IMPORT DEPENDENCY”

For: Mains
Topic covers: Key highlights of report, Significance, need of the hour and way ahead

A high-level committee submitted its report to the Oil Ministry on a strategy to reduce India’s oil import dependence.

The committee was formed to discuss research-related synergies and tax issues for state-run oil companies.
The committee also explored the possibility of forming a new entity for oil services and related manpower.
It also explored the need and possibility of formation of new entity dealing with oil services and supply of qualified manpower to oil and gas sector around the world.
Committee also looked into mergers, acquisitions and consolidation of oil and gas public sector undertakings (PSUs) and the joint ventures.

Committee members: Anil Kakodkar (scientist) and Sidharth Pradhan, an expert on financial and tax issues.

During 2018, India consumed 204.92 million tonnes of petroleum products and 58.64 billion cubic metres of natural gas while the domestic production of crude oil and natural gas almost stagnated.
The import dependency of crude oil and LNG during the year was 82.59 per cent and 45.89 per cent, respectively which is likely to increase in days to come.
During 2018, petroleum import (Rs 7,028.37 billion) was 23.42 per cent of total gross import (Rs 30010.2 billion) of the nation.

India’s projected oil demand is going to grow at CAGR 4 per cent during 2016-2030 against the world average of 1 per cent though the projected oil demand will be much lower as compared to the US and China.
India is thus at a very precarious situation and to secure its energy needs in a sustainable manner, out-of-box solutions are needed.

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.
The Petroleum Ministry will consider the recommendations while formulating policies on the issue.

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