Lok Sabha Question No. 4257 (UNSTARRED), answered on 2019-01-07
Subject: Steps to Cut Down Import Bill
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RANGASWAMY DHRUVANARAYANA, RAJESH KUMAR DIWAKAR, GAJANAN CHANDRAKANT KIRTIKAR, RAM KUMAR SHARMA KUSHWAHA

## LOK SABHA UNSTARRED QUESTION No. 4257 TO BE ANSWERED ON 7 th  JANUARY, 2019

## Steps to Cut Down Import Bill

## 4257.  SHRI R. DHRUVA NARAYANA:

SHRI GAJANAN KIRTIKAR:

SHRI RAM KUMAR SHARMA:

SHRI RAJESH KUMAR DIWAKER:

Will the Minister of PETROLEUM AND NATURAL GAS

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be pleased to state:

- (a) whether  there  is  any  proposal  from  NITI  Aayog  to  blend  methanol  with  petrol  and advocating methanol as preferred cooking fuel in households as well as commercially to cut down oil import bill by 10 per cent and if so, the details thereof and the time by which the said proposal is likely to be accepted;
- (b) whether  the  Government  would  make  available  methanol-cum-cooking  stoves  on  a mass scale to use methanol and minimise country's imports and if so, the details thereof;
- (c) the  reasons  for  Foreign  Direct  Investment  (FDI)  in  oil  and  gas  sector  constituting  a low share of 2 per cent of the total FDI inflows so far; and
- (d) whether the Government held discussion with global oil biggies very recently and if so, the details thereof along with efforts made by the Government to attract global investors in oil sector and assure them of better growth in the country despite of geo-political headwinds?

## ANSWER

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

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- (a) NITI Aayog has written to Ministry of Petroleum & Natural Gas advocating to blend methanol with petrol and blending of DME (Di Methyl Ether) with LPG as a cooking fuel. The ministry has examined the issue and it has been observed that the domestic production of methanol is only around 10 to 20 per cent of domestic consumption and as per National Biofuels Policy 2018 the import of biofuels is not allowed.

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- (b) NITI Aayog has informed that Government of Assam has initiated a pilot project on October 5, 2018 for distribution of methanol canisters and cooking stoves at Namrup.
- (c) Inflow  of  FDI  depends  upon  various  factors  like  availability  of  natural  resources, market  size,  infrastructure,  political  and  general  investment  climate  as  well  as macroeconomic stability and investment decision of foreign investors. Inflow of FDI in petroleum and natural gas has varied considerably over the years and the same may be attributed to the bulkiness of investments, volatility of crude prices etc.
- (d)  Yes,  Sir.  At  the  interaction  held  on  15/12/2018,  India's  concern  regarding  rising global  crude  oil  prices  was  highlighted  alongwith  issues  faced  by  the  consuming countries due to high crude oil prices. Government has taken many initiatives to attract global  investors  in  oil  &  gas  sector.  Some  of  the  major  initiatives  are  pricing  and marketing  freedom,  particularly  in  deep  waters  and  requiring  technology  for  high pressure high temperature exploitation, Hydrocarbon Exploration and Licensing Policy (HELP)  /  Open  Acreage  Licensing  Policy  (OALP),  early  monetization  of  coal  bed methane,  incentives  for  discovery  of  small  fields,  seismic  survey  at  national  level, approval for Enhanced Oil Recovery (EOR) / Improved Oil Recovery (IOR) methods, unconventional hydrocarbon policy, extension of production sharing contracts etc.