Lok Sabha Question No. 3512 (UNSTARRED), answered on 2020-03-16
Subject: Reforms in Exploration and Licensing Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Locket Chatterjee, Kirit Premjibhai Solanki, Kotagiri Sridhar

## LOK SABHA UNSTARRED QUESTION NO. 3512 TO BE ANSWERED ON 16 th  March, 2020

## Reforms in Exploration and Licensing Policy

## 3512. MS. LOCKET CHATTERJEE: DR. (PROF.) KIRIT PREMJIBHAI SOLANKI: SHRI SRIDHAR KOTAGIRI:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a) the details of steps/initiatives taken by the Government to reduce dependency on  fossil  fuels  from  abroad  and  the  total  funds  allocated  and  utilized  to implement these initiatives;
- (b) the  targets  set  under  each  initiative  in  the  state  of  Andhra  Pradesh  and  the measures taken by the Government to review these initiatives;
- (c) whether  any  new  oil  exploration  projects  have  been  started  to  reduce dependency from abroad, if so, the details thereof;
- (d) whether  any  steps  have  been  taken  to  improve  consumption  of  bio-fuels  in order to reduce imports from other countries; and
- (e) whether the Government has made any reforms in exploration and licensing policy to enhance exploration activities, attract domestic and foreign investment  and  accelerate  domestic  production  of  oil  and  gas  from  existing fields, if so, the details thereof?

## ANSWER

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

## ( श्री धमेन्द्र प्रधान )

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

(a) & (b) Ministry of Petroleum and Natural Gas is working in collaboration with various  Central  Government  Ministries/stakeholders  to  make  efforts  to  achieve reduction in import dependency on oil. The import reduction strategy broadly includes increasing  domestic  production  of  oil  and  gas,  improving  energy  efficiency  and productivity,  giving  thrust  on  demand  substitution,  promoting  biofuels  and  alternate fuels  and  renewables.  The  Roadmap  has  highlighted  various  strategies/initiatives

which can be taken for reducing import dependency, for which disaggregated level targets have not been indicated.

(c) As  per  the  schedule  stipulated  in  Hydrocarbon  Exploration  and  Licensing Policy (HELP)/Open Acreage Licensing Policy (OALP), four bidding rounds have so far  been  finalized  in  which  94  exploration  blocks  have  been  awarded  covering  an area  of  approximately  1,36,790  sq.  km.  OALP  Bid  Round-V  offering  11  blocks covering  an  area  of  approximately  19,800  sq.  km.  was  also  launched  on  14 th January, 2020.

(d) The Government, through Oil Marketing Companies (OMCs), is implementing Ethanol  Blended  Petrol  (EBP)  Programme  and  Biodiesel  blending  programme  for blending  of  ethanol  and  biodiesel  with  Petrol  and  High  Speed  Diesel  respectively. Further,  in  order  to  improve  the  availability  of  ethanol  for  blending  with  petrol  and thereby  reduce  imports  of  petroleum  products,  the  Government  has  opened  the Second  Generation  (2G)  route  and  allowed  use  of  other  feedstocks  like  grains, sugarcane juice, fruit and vegetable wastes etc. for production of ethanol. Government  is  also  promoting  production  of  Compressed  Bio  Gas  from  various wastes  /  biomass  sources.  In  this  direction,  Oil  PSUs  have  launched  'Sustainable Alternative Towards Affordable Transportation (SATAT) initiative.   Government has also  notified  the  National  Policy  on  Biofuels  -  2018  which  envisages  an  indicative target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2030.

(e) The Government in February, 2019 approved major reforms in exploration and licensing  policy  to  enhance  exploration  activities,  attract  domestic  and  foreign investment  in  unexplored/unallocated  areas  of  sedimentary  basins  and  accelerate domestic production of oil and gas from existing fields. The policy reforms inter-alia aims  to  boost  exploration  activities  with  greater  weightage  to  work  programme, simplified fiscal and contractual terms, bidding of exploration blocks under Category II and  III sedimentary basins without any production or revenue  sharing to Government,  early  monetization  of discoveries by extending  fiscal incentives, incentivizing  gas  production  including  marketing  and  pricing  freedom,  induction  of latest technology and capital, more functional freedom to National Oil Companies for collaboration and private sector participation for production enhancement methods in nomination  fields,  streamlining  approval  processes  and  promoting  ease  of  doing business including electronic single window mechanism.

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