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The Parliamentary Consultative Committee attached to Ministry of Petroleum & Natural Gas complemented the Government for initiating several steps to ensure energy security of the country. Shri Mani Shankar Aiyar Minister for Petroleum & Natural Gas while chairing the meeting here today informed that various strategies are being adopted by his Ministry towards this end. This include efforts to NELP, exploring new areas in deep waters and difficult frontiers, developing new discoveries faster and improving recovery from existing oil fields, acquiring acreages abroad, importing natural gas, tapping alternative energy sources like CBN, underground coal gasification (UCG) and gas hydrates and part substituting fossil fuel by ethanol, bio-diesel and hydrogen. He elaborated recent initiatives in this regard including launch of NELP-V, agreement with Iran to import LNG and acquiring equity in two fields, and understanding between India, Myanmar and Bangladesh for gas import through pipeline from Myanmar and the hugely successful one day Round Table of Asian Ministers. Availability of oil is vital for all economies particularly oil importing countries like India. Oil and Gas currently meet about 45% of India’s Energy needs. The oil import dependence of about 70% in 2003-04 is expected to go up to 85% in 2020.
Shri Aiyar announced that the government has decided to allow MRPL and RIL to market SKO outside the Public Distribution System directly to genuine customers. The PDS (subsidised) Kerosene is presently sold by the oil marketing PSUs, IOC, BPCL and HPCL.
In another initiative Shri Aiyar told the Members that his Ministry has requested all the State Governments/Union Territories to identify and close all unauthorized utility pumps /barrel points in rural areas/highways. Utility pump locations having a potential of 20-25 KL per month will be replaced by low cost Retail Outlets. For locations having potential of less than 20-25 KL per month, Oil Marketing Companies shall develop a business model to meet the demand at such rural locations, by establishing sub-outlets of the nearest retail outlets, etc. To curb the adulteration of petroleum products Shri Aiyar informed that the penal provisions listed in Marketing Discipline Guidelines are being made more stringent and provisions are also being considered to fix accountability for product quality on Oil Companies and their officers.
The Minister informed that the Advisory Committee for Synergy In Energy set up to recommend measures for oil public sector undertakings to leverage their strengths in their respective areas of core competence is expected to furnish its report by May 2005. The Committee had its first meeting on 24.1.2005. He further informed the Members that the Government has approved, in principle, merger of Kochi Refineries Limited (KRL) with Bharat Petroleum Corporation Ltd. (BPCL), in view of the strategic advantages, synergies, smooth implementation of KRL’s modernization, expansion programmes and other fiscal benefits. On completion of the due process of valuation and finalization of the Merger Scheme, BPCL will seek the final approval of the Government.
Following members attended the meeting: Shri K. Samba Siva Rao, Shri Manvendra Singh, Shri Gurudas Kamat, Smt. Preneet Kaur, Shri Kishan Singh Sangwan, Shri Annasaheb Patil, Shri Rajen Gohain, Shri A.P. Abdullakutty, Shri Bhubnaneshwar Prasad Mehta, Ms. Paramjit Kaur Gulshan, Shri Jaisingrao Gaikwad Patil and Shri S. Ajaya Kumar; from Lok Sabha, Shri Raju Parmar, Shri Nandi Yellaiah, Shri Dwijendra Nath Sharmah, Shri Ram Nath Kovind Shri Su. Thirunavukkarasar, Prof. Ram Deo Bhandary, Shri Bhagwati Singh and Shri Veer Singh from Rajya Sabha.
RCJ/KC/ Consultatitive Committee Meet (10.2.05)
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