High level Committee Recommends to Reduce Import Dependency of Crude
The High-Level Committee constituted to examine the issues relating to the preparation of action plan to create synergy among R&D Centres of Oil & Gas PSUs; tax issues and ways to benefit from GST by the Oil & Gas PSUs has submitted its report to the Ministry of Petroleum & Natural Gas.
Observations made on India’s Import Dependency
- In 2018, India consumed 204.92 MMT petroleum products and 58.64 BCM natural gas. On the other hand, the domestic production of crude oil and natural gas has almost stagnated.
- The import dependency of crude oil and LNG during the year 2018 was 82.59% and 45.89% respectively and it is likely to increase in the coming days.
- Petroleum imports were 23.42% of total gross imports of India in 2018.
- India’s projected oil demand is expected to grow at CAGR of 4% during 2016-2030 against the world average of 1%. Even then the projected oil demand will be much lower as compared to the US and China.
- Hence India is at a very precarious situation and must secure its energy needs in a sustainable manner; out-of-box solutions are needed. R&D is going to play an important role in the process.
The High-Level Committee has recommended short term, medium term and long term strategies in the report to reduce the import dependency of the nation.