Lok Sabha Question No. 112 (STARRED), answered on 2019-11-25
Subject: Reforms in Oil and Energy Sector
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Pritam Gopinath Munde, Raksha Nikhil Khadse

## GOVERNMENT OF INDIA

## LOK SABHA

## STARRED QUESTION NO. 112 TO BE ANSWERED ON 25 th  NOVEMBER, 2019

## Reforms in Oil and Energy Sector

## *112. DR. PRITAM GOPINATHRAO MUNDE: SHRIMATI RAKSHA NIKHIL KHADSE:

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री

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

- (a) Whether India is developing energy infrastructure worth $100 billion;
- (b) if so, the details of the major investments which are in the pipeline;
- (c) whether there is a need to bring policy reforms to make it conducive for foreign players to invest in this development;
- (d) if so, the steps taken by the Government in this regard; and
- (e) whether the Government proposes to bring reforms in the oil and energy sector such as opening  of  retail  outlets  and  exploration  licensing  policy  to  make  the  country  the  new destination for global energy players and if so, the details thereof?

## ANSWER

पेट्रोल ियम और प्राक ृ तिक गैस मंत्री ( श्री धमेंन्द्र प्रधान )

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

- (a) to (e): A statement is laid on the Table of the House.

STATEMENT REFERRED IN REPLY TO PARTS (a) to (e) OF THE LOK SABHA STARRED  QUESTION  NO.*112  ASKED  BY  DR.  PRITAM  GOPINATHRAO MUNDE AND SHRIMATI RAKSHA NIKHIL KHADSE, M.P. TO BE ANSWERED ON  NOVEMBER  25,  2019  REGARDING  REFORMS  IN  OIL  AND  ENERGY SECTOR.

(a)  & (b) Development of India's energy infrastructure will involve huge investments in oil and  gas  infrastructure  of  more  than  100  billion  dollars  including  in  exploration  and production  of  oil  &  gas,  oil  refining,  pipelines,  city  gas  distribution  networks  and  LNG terminals.    Important  sectors  having  thousands  of  crores  of  investment  potential  include, upstream oil and gas exploration and production, gas pipelines infrastructure for connecting national gas grid, city gas distribution networks in the newly authorized geographical areas, LNG terminals,  compressed  bio-gas  plants,  capacity  addition  of  refineries,  fertilizer  plants and petro-chemical parks and ancillary industries and CNG auto sector.

(c)  to  (e)    Policy  reforms  by  the  Government  in  the  Hydrocarbon  sector  are  a  continuous process  and  a  series  of  policy  decisions  have  been  taken  in  the  last  five  years.   The Government in February, 2019 approved major 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. 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. The Government has also recently notified  new  guidelines  for  granting  authorisation  for  marketing  transportation  fuels  which will further liberalise the retail fuel sector in the country.

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