Lok Sabha Question No. 401 (UNSTARRED), answered on 2017-12-18
Subject: Coventional Energy Subsidy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: R. PARTHIPAN, J. JAYASINGH THIYAGARAJ NATTERJEE

## LOK SABHA

## UNSTARRED QUESTION NO.401 TO BE ANSWERED ON 18 TH  DECEMBER, 2017

## COVENTIONAL ENERGY SUBSIDY

## 401. SHRI R. PARTHIPAN: SHRI J.J.T. NATTERJEE:

## पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the Government is planning to phase out all conventional energy subsidies in near future and if so, the details thereof;
- (b)  whether  the  Government  proposes  to  force  petroleum  products  to  compete  with  other fuels like biomass and biogas, etc. and if so, the details thereof;

(c) whether the Government also proposes to accelerate the development and implementation of cost-effective energy efficiency standards to reduce the long-term demand for energy and if so, the details thereof along with the steps taken/being taken in this regard; and (d)  whether  the  engagement  of  States,  industrial  companies,  utility  companies  and  other stakeholders to accelerate this investment has been planned and if so, the details thereof?

## ANSWER पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

## (श्री धमेन्द्र प्रधान)

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a): The Government provides subsidy to consumers on Domestic LPG and Retail Selling Price  (RSP)  of  PDS  Kerosene.      The  prices  of  Petrol  and  Diesel  have  been  made  market determined  by  the  Government  effective  from  26 th June,  2010  and  19 th October,  2014 respectively and since then their prices are being decided by the Public Sector Oil Marketing Companies (OMCs) in line with the changes in the international market prices.
- (b): Government  has  been  promoting  blending  of  ethanol  with  Petrol  and  biodiesel with  diesel.  OMCs  have  been  directed  to  sell  ethanol  blended  Petrol  with  percentage  of ethanol  up  to  10%  as  per  BIS  specifications  to  achieve  a  mandatory  target  of  5%  overall. Currently,  the  ethanol  blending  percentage  in  petrol  is  around  2%  and  biodiesel  blending percentage in diesel is less than 0.5 % due to limited availability for blending. Government has,  therefore,  planned  a  major  policy  initiative  to  promote  2G  ethanol  to  augment availability of ethanol for blending.

Ministry  of  New  and  Renewable  Energy  has  launched  Biogas  Power  (Off-grid) Programme to promote power generation, specifically in the small capacity range (3 kW to 250  kW),  based  on  the  availability  of  large  quantity  of  animal  wastes  and  wastes  from forestry, rural based industries (agro/food processing), kitchen wastes, etc.

(c) & (d): Ministry of Power has issued Notification dated 16.08.2017 regarding constant speed fuel consumption standard for heavy duty commercial vehicles of category M3 and N3 with gross vehicle weight and exceeding twelve tonnes.

Further, Government has implemented 'PAT (Perform Achieve and Trade) scheme to reduce specific  energy  consumption  in  energy  intensive  industrial  sectors.  PAT  is  a  market  based mechanism, in which targets are set by BEE for each designated consumers. The mechanism is facilitated through trading of Energy Saving Certificates. In the PAT cycle-1, completed in March,  2015,  478  industrial  units  from  8  industrial  sectors  were  covered.  PAT  scheme  is covering  large  industrial  sectors  including  power  generating/distribution  companies  as designated  consumers  and  the  mechanism  is  facilitated  with  involvement  of  BEE/Energy exchanges, State Designated Agencies and the consultants.