Recommendations of High-Level Committee on reducing crude oil importsDate: 22 May 2019 Tags: Commissions & Committees
The High-Level Committee (HLC) constituted by Union Government has submitted its recommendations to bring down India’s dependence on crude oil imports. The HLC consisted of eminent Scientist Dr Anil Kakodkar and Sidharth Pradhan, an expert on financial and tax issues. It was formed to discuss research-related synergies and tax issues for state-run oil companies.
It was mandated to examine issues related to preparation of action plan to create synergy among Research and Development Centres of Oil and Gas Public Sector Undertakings, tax issues and ways to benefit from GST by the Oil and Gas PSUs, merger, acquisition and consolidation of Oil and Gas Public Sector Undertakings and the Joint Ventures and formation of new entity dealing with oil services and supply of qualified manpower to the Oil and Gas sector around the world.
- It also explored 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
- It also looked into mergers, acquisitions and consolidation of oil and gas public sector undertakings (PSUs) and the joint ventures
- It has recommended short term, medium term and long term strategies, clearly bringing out the strategy to reduce the import dependency of the nation.
- The recommendations submitted by the Committee will be considered by Union Ministry of Petroleum and Natural Gas while formulating policies.
Energy security is key strategic priority for India. During 2018, India consumed 204.92 MMT (million metric tons) petroleum products and 58.64 BCM (Billion cubic metres) natural gas. The import dependency of crude oil and LNG in 2018 was 82.59% and 45.89% respectively which is likely to increase in days to come. Whereas, the domestic production of crude oil and natural gas has been almost stagnated.
During 2018, petroleum import (Rs.7028.37 billion) was 23.42% of total gross import (Rs.30010.2 billion) of the nation. India’s projected oil demand is going to grow at compound annual growth rate (CAGR) 4% during 2016-2030 against world average of 1% though projected oil demand will be much lower as compared to US and China. Thus, India is 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.