Lok Sabha Question No. 2679 (UNSTARRED), answered on 2016-03-14
Subject: New Policy of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: PREM SINGH CHANDUMAJRA, VIRENDRA  KUMAR, RAJESH KUMAR DIWAKAR, V. PANNEER SELVAM

## LOK SABHA UNSTARRED QUESTION NO.2679

## TO BE ANSWERED ON 14 th  March, 2016 New Policy of Petroleum Products

2679: SHRI PREM SINGH

CHANDUMAJRA:

DR. VIRENDRA KUMAR:

SHRI RAJESH KUMAR

DIWAKER:

SHRI V. PANNEERSELVAM:

## पेट्रोलियम एवं प्राक ृ तिक गैस मंत्री

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

- a) whether the Government proposes to hold consultation with the industry/ investors before formulating any  new  Policy regarding development  of  oil/gas and  other petroleum products and if so, the details thereof along with salient features of the new oil/petroleum policy;
2. (b) whether the Government has worked out any mechanism to ensure representation of the end consumers at such consultations and check formation of cartels/monopolies and if so, the details thereof;
3. (c) whether the Government proposes to deregulate the prices of natural gas and if so, the details thereof;
4. (d) whether the Government proposes to change the revenue sharing formula for oil and gas sector and if so, the salient features of the same; and
5. (e) the steps proposed to be taken by the Government to reduce the import expenditure and growth of petroleum industry while protecting the rights of the consumers as well?

## ANSWER

## पेट्रोलियम एवं प्राक ृ तिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) ( धमेन्द्र प्रधान )

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE  MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN):

(a)The consultations are carried out with the industry and its representatives at various stages of policy formulation wherever considered necessary.

(b)Government, takes due care at each stage of consultation and policy formulation to check manipulations.

(c)The mechanism for pricing of domestically produced natural gas has been brought out in New Domestic Gas Pricing Guidelines 2014. For High Pressure-High Temperature,  Deepwater  and  Ultra  Deepwater  areas,  a  proposal  to  grant  marketing freedom with a cap has been approved by the Government.

(d)The present production of hydrocarbons is under Production Sharing Contract/Nomination regime, while the future bidding and allotment of acreages will be on revenue sharing regime.

(e)The  government  has  taken  several  steps  to  enhance  domestic  production  and reduce import dependency through several policy initiatives such as:

(i)Policy to grant relaxation, extension, and  clarifications at development and production stage for early monetization of hydrocarbon discoveries

(ii)Marginal Field Policy- Discovered Small Field Policy (iii) Uniform Licensing Policy-Hydrocarbon Exploration and Licensing Policy (iv)Policy for Grant of Extension to small and medium sized discovered fields (v)Policy for Marketing Freedom for Gas Produced from Deepwater and Ultra

Deepwater areas etc.

The implementation of these policy initiatives and other reform initiatives is expected to enhance domestic production from the fields and reduce imports.

*********