Lok Sabha Question No. 2303 (UNSTARRED), answered on 2025-03-13
Subject: Reduction of India's Dependence on Crude Oil Imports
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dr. K Sudhakar, Shri Dilip Saikia, Shri Yogender Chandolia, Dr. Nishikant Dubey, Shri Chintamani Maharaj, Shri Anurag Singh Thakur, Shri Mukesh Rajput, Shri Balabhadra Majhi

## LOK SABHA

## UNSTARRED QUESTION NO. 2303 TO BE ANSWERED ON 13th MARCH, 2025

## Reduction of India's Dependence on Crude Oil Imports

## † 2303 Shri Mukesh Rajput:

Dr. K Sudhakar:

Shri. Yogender Chandolia:

Shri Chintamani Maharaj:

Dr. Nishikant Dubey:

Shri Anurag Singh Thakur

Shri Dilip Saikia:

Shri Balabhadra Majhi:

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğी

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

- (a) the steps being taken to reduce India's dependence on crude oil imports;
- (b) the manner in which the Government ensures stability in fuel prices amidst fluctuations in global crude oil prices;
- (c) the manner in which the Government is addressing environmental concerns related to oil and gas extraction and refining;
- (d) the role of the petroleum sector in achieving India's net-zero emissions target by 2070; and
- (e) whether any agreement has been signed with any countries on joint exploration of crude oil projects and if so, the details thereof ?

## ANSWER

## पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğी

( Įी सुरेश गोपी)

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

- (a) Government have taken various measures to reduce the dependency on imported crude oil and to promote domestic production of oil and gas which, inter alia, include:
- i. Policy  under  Production  Sharing  Contract  (PSC)  regime  for  early  monetization  of hydrocarbon discoveries, 2014.
- ii. Discovered Small Field Policy, 2015.
- iii. Hydrocarbon Exploration and Licensing Policy (HELP), 2016.
- iv. Policy for Extension of PSCs, 2016 and 2017.
- v. Policy for early monetization of Coal Bed Methane, 2017.
- vi. Setting up of National Data Repository, 2017.
- vii.  Appraisal  of  Un-appraised  areas  in  Sedimentary  Basins  under  National  Seismic Programme, 2017.
- viii. Policy framework for extension of PSCs for Discovered Fields and Exploration Blocks under Pre-New Exploration Licensing Policy (Pre-NELP), 2016 and 2017.
- ix. Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas, 2018.
- x. Policy  Framework  for  exploration  and  exploitation  of  Unconventional  Hydrocarbons under  Existing  Production  Sharing  Contracts  (PSCs),  Coal  Bed  Methane  (CBM) Contracts and Nomination Fields, 2018.
- xi. Natural Gas Marketing Reforms, 2020.
- xii.  Lower  Royalty  Rates,  Zero  Revenue  Share  (till  Windfall  Gain)  and  no  drilling commitment  in  Phase-I  in  OALP  Blocks  under  Category  II  and  III  basins  to  attract bidders.
- xiii. Release of about 1 Million Sq. Km. (SKM) 'No-Go' area in offshore which were earlier blocked for exploration for decades.
- (b) Various steps have been taken by Government and Public Sector Undertaking (PSUs) Oil Marketing Companies (OMCs) to mitigate the burden on consumers of higher crude prices which, inter-alia, include:
- i. Reduction of Central Excise duty by the Central Government by a total of Rs. 13/litre and Rs. 16/litre on petrol and diesel respectively in two tranches in November 2021 and May 2022,  which  was  fully  passed  on  to  consumers.  Some  State  Governments  also  reduced VAT rates  to  provide  relief  to  citizens.  In  March,  2024,  OMCs  also  reduced  the  retail prices of petrol and diesel by Rs. 2 per litre each, across the country.
- ii. Insulating common citizens from high international prices by diversifying the crude import basket, invoking the provisions of Universal Service Obligation to ensure availability of petrol & diesel in domestic market, increasing the blending of ethanol in petrol, etc.
- iii. Intra-state freight rationalisation by PSU OMCs which has benefitted consumers located at remote areas within the states. This initiative has also reduced the difference between the maximum and minimum retail prices of Petrol or Diesel within a state.
- iv. Subsidized domestic LPG cylinder made available to more than 10.33 crore PM Ujjwala Yojana  beneficiaries,  across  the  country.  A  few  State  Governments  are  also  providing some  additional  subsidy  on  LPG  refills  and  bearing  the  additional  cost  from  their respective budgets.
- (c) to (d) Oil and Gas PSUs have already announced their target dates for Net Zero status and developed plans for the same. To address environmental concerns and achieving country's net-zero emissions target they are adopting several methods to decarbonize their operations and value chain which, inter alia ,  include introduction of cleaner / alternate fuels; such as leapfrogging  from  Bharat  Stage  (BS)  IV  to  BS  VI  fuel  norms;  adoption  of  Biofuels  e.g. Ethanol  Blending,  Compressed  Bio  Gas  (CBG)  and  Biodiesel,  promotion  of  cleaner production  processes;  promoting  gas  based  economy,  promoting  energy  efficiency  and conservation practices, production and utilisaton of Green Hydrogen, installation of Electric Vehicle (EV) charging infrastructure, etc. Over the last 10 years, Ethanol blending in Petrol by  public  sector  OMCs  has  helped  reduce  approximately  578  lakh  metric  tonne  of  CO2

emissions.  Government  has  also  notified  the  'Pradhan  Mantri  JI-VAN  (Jaiv  Indhan  Vatavaran  Anukool  Fasal  Awashesh  Nivaran)  Yojana',  to  provide  financial  support  for integrated bio-ethanol projects aimed at setting up advanced Biofuel projects in the country using lignocellulosic biomass and other renewable feedstock.

(e)  Government  has  permitted  100%  FDI  in  E&P  Sector  through  automatic  route.  The blocks/fields for exploration  and  production  activities are offered through  international competitive  bidding  process  where  domestic  entities  have  to  compete  on  equal  terms  and conditions  with  foreign  bidders.  Indian  Oil  &  Gas  PSUs  have  been  actively  pursuing opportunities  to  acquire  high-quality  oil  and  gas  assets  overseas  to  strengthen  the  country's energy security. Oil and gas PSUs hold Participating Interest (PI) in 45 blocks in 21 countries.

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