Lok Sabha Question No. 2491 (UNSTARRED), answered on 2016-05-09
Subject: India's Energy Outlook
Ministry: PETROLEUM AND NATURAL GAS
Asked by: GAURAV GOGOI, SHOBHA KARANDLAJE, GANESH SINGH, RAM KUMAR SHARMA KUSHWAHA, Richard Hay, PARVESH SAHIB SINGH, ASADUDDIN OWAISI

## LOK SABHA UNSTARRED QUESTION No. 2491

## TO BE ANSWERED ON 9 th  MAY, 2016

## INDIA'S ENERGY OUTLOOK

## 2491.   SHRI GAURAV GOGOI:

KUMARI SHOBHA KARANDLAJE:

SHRI GANESH SINGH:

SHRI RAM KUMAR SHARMA:

PROF. RICHARD HAY:

SHRI PARVESH SAHIB SINGH:

SHRI ASADUDDIN OWAISI:

## isVªksfy;e vkSj izkd`frd xSl ea=h

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

- (a)   whether    the  Government    has    taken  cognizance    of    International  Energy  Agency's (IEA's) report wherein it has stated that the country's petroleum products consumption/demand is likely to double over the next two decades;
- (b) if so, the details thereof along with the action plan formulated/proposed to be formulated by the Government to adopt better conservation techniques and for ensuring proper and better utilisation of domestic resources and for infrastructure development in hydrocarbon sector;
- (c) whether  the  Government  proposes  to  make  available/provide  alternate/reliable  and affordable sources of energy to the masses in the country;
- (d) if so, the details thereof along with the investment made/likely to be made for the purpose during the last three years and the current year and the other steps taken/being taken by the Government in this regard; and
- (e) whether   the   fuel   consumption   in   the  country   is    likely  to  outpace   the  other countries    in   the  next  few  years  and  if  so, the  steps  taken/being  taken  by  the Government to restrict/curtail fuel consumption in the country?

## ANSWER

## isVªksfy;e vkSj izkd`frd xSl ea=ky; esa jkT; ea=h ¼Lora= izHkkj½ ¼Jh /kesZUnz iz/kku½

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

(a) & (b):  As per international Energy Agency's (IEA), World Energy Outlook 2015, under the new policies scenario, oil demand in India is forecasted to reach 458 MMT by 2040 from a level of 176 MMT in 2013.

As regards the conservation techniques, Petroleum Conservation Research Association (PCRA), under the Ministry of Petroleum and Natural Gas, promotes conservation of petroleum products in the major sectors of economy like transport, industry,

households  and  agriculture.    This  includes  conservation  of  energy  sources,  development, evaluation and commercialization of efficient equipment and additives, popularizing production of bio-fuels, environment protection etc.

Further, in order to attract foreign investment in hydrocarbon sector, the Government has liberalized Foreign Direct Investment (FDI) policy. FDI in exploration and refining sector is allowed under the automatic route with  100% equity for private companies, subject  to  the existing sectoral policy and regulatory framework. Recently, Government has taken several policy decisions  and  reforms in  the  hydrocarbon  sector  including  new  Hydrocarbon Exploration  and  Licensing  Policy  (HELP),  Discovered  Small  Field  Policy,  Marketing  and pricing  freedom  for  new  gas  production  from  Deepwater,  Ultra  Deepwater  and  High Pressure-High  Temperature  area,  linking  the  transparent  new  gas  pricing  formula  to  the global market, extension of Production Sharing Contracts of small and medium size fields, early monetization of Hydrocarbon discoveries, policy on testing requirements for discoveries in NELP blocks, etc. in order to encourage investment and boost exploration and production of hydrocarbon in India.

(c) &  (d):  The  Government,  through  Oil  Marketing  Companies  (OMCs),  has  been implementing Ethanol Blended Petrol (EBP) Programme. Under this programme, OMCs sell ethanol blended petrol with percentage of ethanol upto 10 per cent as per Bureau of Indian Standards (BIS) specification.

In order to improve the availability of ethanol, the Government on 10.12.2014, inter alia, decided to fix the delivered price of ethanol in the range of Rs.48.50 per litre to 49.50 per litre.    Further,  ethanol  produced  from  other  non-food feedstocks besides molasses, like cellulosic and ligno cellulosic materials including petrochemical route, has also been allowed to be procured subject to meeting the relevant BIS Standards.

The  Government  has  also  allowed  direct  sale  of  Bio-diesel  (B-100)  by  private manufacturers to bulk consumers.  Moreover, retailing of Bio-diesel blended diesel (B5) has also started at OMC retail outlets.

As per information furnished by Ministry of New and Renewable Energy (MNRE), they are supporting Research and Development (R&D) projects in the area of development of various biofuels.  The amount of funds allocated for R&D under biofuels during last three years are given below :

| Year    | Expenditure   |
|---------|---------------|
| 2013-14 | 6.38 crore    |
| 2014-15 | 1.104 crore   |
| 2015-16 | 0.856 crore   |
| Total   | 8.34 crore    |

(e) :  The demand and supply of crude oil/petroleum products in the country for consumption of petro-products is an interplay of several factors like success in new production of crude oil, blending of bio-fuels, success in conservation efforts, etc.  The Government has been taking a number of steps, as mentioned above, to ensure energy security of the country.

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