Lok Sabha Question No. 904 (UNSTARRED), answered on 2021-12-02
Subject: Development of Energy Infrastructure
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Hasmukhbhai Somabhai Patel

## LOK SABHA UNSTARRED QUESTION NO. 904 TO BE ANSWERED ON 02 nd  DECEMBER, 2021

## Development of Energy Infrastructure

## 904. SHRI PATEL HASMUKHBHAI SOMABHAI:

## पेोलयम और ाक ृ तक गैस मंी

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

- (a)  whether the Government reforms policy process and a series of policy decisions have been taken in the Hydrocarbon sector during the last five years.
- (b)  if so, the details of the major decisions; and
- (c)    whether the  Government has planned to develop energy infrastructure in next four years.
- (d)  if so, the details thereof; and
- (e)  the total amount spent by the Government during the said period?

## ANSWER

## पेोलयम और ाक ृ तक गैस मंालय म राय मंी ( ी रामेवर तेल )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI RAMESWAR TELI)

(a) & (b): Yes sir, Government has taken a series of policy reforms in recent past in a bid  to  enhance  exploration  and  production  activities  in  the  country  and  make Petroleum Products available to the Citizens. A list of major reforms is annexed.

(c) & (d) Yes Sir, at present country has around 20,000 KM long operational Natural gas  pipeline  and  232  Geographical  areas  where  city  Gas  distribution  Network  is operational.  Government  has  planned  to  develop  National  Gas  Grid,  City  Gas Distribution Networks to cover major demand centres across the country to provide clean  and  green  fuel  to  Public . Further,  Government  of  India  has  approved establishing Phase II of the Strategic Petroleum Reserves with total storage capacity of 6.5 MMT (Million Metric Tonne) at Chandikhol (4 MMT) and Padur (2.5 MMT) to be executed through Public Private Partnership.

(e)  Year wise Expenditure of Internal and Extra Budgetary Resources (IEBR) for the last 5 years is given below:

| (in Rs Crore)                           | 2016-17 (Actual)   | 2017-18 (Actual)   | 2018-19 (Actual)   | 2019-20 (Actual)   | 2020-21 (Actual)   |
|-----------------------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
| Total Expenditure in Oil and Gas Sector | 1,04,426           | 1,32,004           | 1,00,309           | 1,05,603           | 1,11,194           |

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Annexure referred to in parts (a) & (b) of the Lok Sabha Unstarred Question No 904 raised  by  Shri  PATEL  HASMAUKHBHAI  SOMABHAI  to  be  answered  on  2 nd December 2021 regarding 'Development of Energy Infrastructure'.

List of Major reforms taken by the Government of India to enhance exploration and production activities in the country:

-  Discovered Small Field Policy, 2015.
-  Hydrocarbon Exploration and Licensing Policy, 2016.
-  Policy for Extension of Production Sharing Contracts, 2016 and 2017.
-  Policy for early monetization of Coal Bed Methane 2017
-  Setting up of National Data Repository, 2017.
-  Appraisal of Unappraised areas in Sedimentary Basins 2017
-  Re-assessment of Hydrocarbon Resources 2017
-  Policy  to  Promote  and  Incentivize  Enhanced  Recovery  Methods  for  Oil  and Gas, 2018.
-  Policy framework for Exploration and exploitation of Coal Bed Methane (CBM) from areas under Coal Mining Lease allotted to Coal India Limited (CIL) and its subsidiaries 2018
-  Policy Framework for Streamlining working of Production Sharing Contracts in respect of Pre-NELP and NELP Blocks 2018
-  Policy Framework for Exploration and Exploitation of Unconventional Hydrocarbons under Existing Production Sharing Contracts (PSCs) Coal Bed Methane (CBM) Contracts and Nomination Fields 2018
-  Reforms  in  Hydrocarbon  Exploration  and  Licensing  Policy  for  enhancing domestic exploration and production of oil and gas 2019
-  Natural  Gas  Marketing  Reforms  2020:  With  the  objective  of  increasing domestic  production  of  natural  gas,  to  move  towards  gas-based  economy, bring  uniformity  in  process  of  discovery  of  market  prices  of  gas,  and  to promote Ease of doing business.
-  Capital Grant as Viability gap funding has been provided for the development of National Grid in Eastern and North Eastern part of the country.
-  The regulatory framework for bidding of Geographical areas for CGD sector has  been  revised  for  attracting  wider  participation  from  public  and  private sector entrepreneurs.
-  SATAT  initiative  was  launched  in  October,  2018  to  promote  usage  of compressed  bio  gas  (CBG)  as  alternative  transport  fuel  as  part  of  biofuel policy.  Guidelines  for  mixing  of  CBG  with  APM/non-APM  gas  for  supply  to CGD (City Gas Distributor) sector issued to promote CBG production.
-  Existing  guidelines  of  domestic  gas  allocation  for  CGD  sector  in  rest  of  the Country was extended to North East region .

-  Policy  has  been  formulated  in  2017  (further  revised  in  2020)  to  provide Purchase Preference (linked with local Content (PP-LC)) in all Public Sector Undertakings under Ministry of Petroleum and Natural Gas to incentivize the growth  in  local  content  in  goods  and  services  by  implementing  Oil  and  gas projects  in  India  through  purchase  preference  to  the  manufacturers/  service providers  who  meet  the  local  content  targets  in  Oil  and  Gas  business activities.
-  Revision  in  the  guidelines  for  authorization  to  market  transportation  fuels which  would  promote  ease  of  doing  business  and  boost  private  players  to invest  in  retail  sector.  The  salient  features  of  the  revised  guidelines  are  as under:
-  The  resolution  applies  for  marketing  of  only  Motor  Spirit  and  High Speed Diesel for 'Bulk' and 'Retail' business.
-  An  entity  desirous  of  seeking  authorisation  for  either  retail  or  bulk must  have  a  minimum  net  worth  of  Rs  250  Crore  at  the  time  of making application.  In  case  authorization  is  required  for  both  retail and bulk, minimum net worth will be Rs 500 crore.
-  Separate applications to be made for retail and Bulk business.
-  Non refundable application fee on Rs 25 lakh is application.
-  For  retail  authorisation,  an  entity  have  to  set  up  at  least  100  retail outlets, out of which 5% should be in the notified remote areas within 5 years of the grant of authorization.
-  In addition to conventional fuels, the authorized entities are required to install facilities for marketing at least one new generation alternate fuels at their proposed retail outlet within 3 years of operationalization of the said outlet.

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