Lok Sabha Question No. 3513 (UNSTARRED), answered on 2019-07-15
Subject: Projects to Reduce Crude Oil Import Cost
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Prataprao  Jadhav, Sanjay(Kaka) Ramchandra Patil, Su Thirunavukkarasar, Rajendra Agrawal

## LOK SABHA UNSTARRED QUESTION No. 3513 TO BE ANSWERED ON 15 th  JULY, 2019

## Projects to Reduce Crude Oil Import Cost

## 3513. SHRI PRATAPRAO JADHAV:

SHRI SANJAY KAKA PATIL:

SHRI SU. THIRUNAVUKKARASAR:

SHRI RAJENDRA AGRAWAL:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a) whether the Government proposes to formulate any project to reduce the use and import of petrol/diesel and also a project for production of petroleum fuel  through  unrecyclable  plastic  in  view  of  surging  prices  of  crude  oil  in international market;
- (b) if so, whether any system for the same is proposed in collaboration with any other country and if so, the details thereof;
- (c) whether it is true that India is the world's 6th largest petroleum consumer and the consumption of the same is expected to be doubled by the year 2030 and if so, the details of the import of petroleum products during each of the last three years and the current year, year-wise;
- (d) whether the Government proposes to adopt/use new technology/alternative fuel to reduce the import cost of crude oil and consumption in the country; and
- (e) if so, the details thereof along with the extent to which the farmers of the country  are  likely  to  be  benefited  by  it  and  extent  to  which  it  would  help  in reducing the prices of LPG cylinders in the country?

## ANSWER

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

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(a) to (e) :  The Government is promoting biofuel programme with the broader objectives  of  reducing  import  dependency,  generating  employment,  providing better remuneration to farmers etc.  The major sources of biofuels in the country are  molasses,  agricultural  residues,  sugar  containing  materials,  damaged  and surplus  foodgrains,  non-edible  oilseeds,  used  cooking  oil,  biomass,  municipal solid waste, industrial waste, plastic waste etc.

As per International Energy Agency's World Energy Outlook 2018, India is  the  third  largest  oil  consuming  country  in  the  world  and  consumption  is projected to grow at a Compounded Annual Growth Rate (CAGR) of 3.47% by 2030  over  2016.  The  details  of  petroleum  products  imported  during  the  last three years and the current year are as follows :

| 2016-17                     | 2016-17                 | 2017-18                     | 2017-18                 | 2018-19 (P)                 | 2018-19 (P)             | 2019-20 (P) (April-May)     | 2019-20 (P) (April-May)   |
|-----------------------------|-------------------------|-----------------------------|-------------------------|-----------------------------|-------------------------|-----------------------------|---------------------------|
| Quantity (in Million tonne) | Value (in Crore rupees) | Quantity (in Million tonne) | Value (in Crore rupees) | Quantity (in Million tonne) | Value (in Crore rupees) | Quantity (in Million tonne) | Value (in Crore rupees)   |
| 36.3                        | 71,566                  | 35.5                        | 88,374                  | 32.5                        | 1,13,418                | 5.8                         | 20,251                    |

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,  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  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.

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