In a report submitted to the Oil Ministry on Tuesday, a high level committee has recommended short term, medium term and long term strategies to reduce import dependency of the nation.

The committee, comprising scientist Anil Kakodkar and Sidharth Pradhan, an expert on financial and tax issues, also explored the possibility of forming a new entity for oil services and related manpower.

 

“It also explored the need and possibility of formation of new entity dealing with oil services and supply of qualified manpower to oil and gas sector around the world,” the ministry said in its statement.

 

The committee was formed to discuss research related synergies and tax issues for state-run oil companies.

 

“They also looked into merger, acquisition and consolidation of oil and gas, public sector utilities (PSUs) and the joint ventures,” it added.

 

During 2018, India consumed 204.92 mmt petroleum products and 58.64 billion cubic metres (bcm) natural gas, whereas the domestic production of crude oil and natural gas has almost stagnated.

 

The import dependency of crude oil and liquified natural gas during the year was 82.59 per cent and 45.89 per cent, and is expected to increase going forward.

 

The ministry also added that research and development would play an important role in the process to reduce import dependency. Ministry of Petroleum & Natural Gas will consider the recommendations submitted by the Committee while formulating policies in the said matter, the statement added.

 

Published On : 21-05-2019

 

Source : SME Times