Lok Sabha Question No. 1982 (UNSTARRED), answered on 2021-12-09
Subject: Policy Reforms for Hydro Carbon Sector
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Hasmukhbhai Somabhai Patel

## LOK SABHA UNSTARRED QUESTION NO. 1982

## TO BE ANSWERED ON 09 th  DECEMBER, 2021

## Policy Reforms for Hydro Carbon Sector

## 1982.     SHRI PATEL HASMUKHBHAI SOMABHAI:

## पेोलयम और ाक ृतक गैस मंी

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

- (a)  whether  there  is  a  need  to  bring  policy  reforms  to  make  hydro  carbon  sector conducive for foreign players to invest in this development;
- (b) if so, the steps taken by the Government in this regard; and
- (c) 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

## 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)  to  (c):    Policy  reforms  is  a  continuous  process  based  on  feedback  from  various stakeholders,  including  investors  and  changing  dynamics  of  Hydrocarbon  industry. Government  has  taken  pathbreaking  policy  initiatives  in  the  direction  of  making Hydrocarbon sector attractive for domestic and foreign investors by bringing 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. A list of major reforms is annexed as Annuxure.

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## Annexure

Annexure referred to in parts (a) to (c) of the Lok Sabha Unstarred Question No 1982 raised by Shri PATEL  HASMAUKHBHAI  SOMABHAI  to  be  answered  on  09 th December 2021 regarding 'Policy Reforms for Hydrocarbon Sector'.

List  of  Major  reforms  introduced  by  the  Government  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.
-  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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