India reducing dependence on oil import, exploration of oil and gas underway in country

By The Statesman

The government is making all efforts to reduce import dependence. India’s oil and oil equivalent gas import dependence in 2014-15 and 2015-16 were 68.9% and 72.2% respectively and during current April-January, 2020-21 is 77.1%.

Oil Industry Development Cess at the rate of 20% ad valorem is applicable on crude oils produced from pre-NELP blocks and at present, there is no such proposal to amend the rate of cess.

Ministry of Petroleum and Natural Gas has taken several steps inter alia promotion of renewable and alternate fuels like ethanol, second-generation ethanol, compressed biogas and biodiesel, promotion of natural gas as clean fuel/feedstock in the country with a view to moving towards a gas-based economy, refinery process improvements, promoting energy efficiency and conservation, efforts for increasing production of oil and natural gas through various policies under Production Sharing Contract (PSC) regime, Discovered Small Field Policy, Hydrocarbon Exploration and Licensing Policy, Setting up of National Data Repository, etc.

The government has also provided functional freedom to National Oil Companies and wider private sector participation by streamlining approval processes including an electronic single-window mechanism. Ministry of Petroleum and Natural Gas is also working in collaboration with various Central Government Ministries/stakeholders to make efforts to achieve a reduction in import dependency on oil.

Exploration of Oil and gas in the country are taking place under:

Nomination Regime – by ONGC and OIL

PSC/RSC Regime – by Indian & Foreign Companies & JVs, including PSUs

The Statesman
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