Transformational Changes in Energy Landscape of India

‘New Partnerships for New Energy’ was the theme of ENRich 2018, India’s flagship event for the Energy and Natural Resources (ENR) sector, held at New Delhi on 11 December 2018, where Dharmendra Pradhan, Minister of Petroleum and Natural Gas and Minister of Skill Development and Entrepreneurship while gracing the occasion said that Energy is a key driver of economic growth and government’s focus is to bring about transformational changes in the energy landscape of India to fulfil the twin objectives of energy justice and climate justice.

The Energy sector in India is witnessing massive disruption due to alternative sources of energy, the geo political scenario and technological advancements. The Minister said:

  • Indian energy sector is at the herald of a new beginning; with the energy vision laid down by Prime Minister Narendra Modi.
  • Vision, with four pillars of energy: Energy Access, Energy Efficiency, Energy Sustainability and Energy Security; has to be seen in tandem for a stable energy future.
  • Petroleum Ministry has endeavoured to ‘Reform, Perform and Transform’ the sector.
  • Government has taken several reforms in a span of four years and accomplished major task with far-reaching impacts.
  • India’s per capita energy consumption is around 1/3rd of the World’s average after US and China and it must change this while being energy efficient.
  • Prime Minister Modi’s goal of transforming life’s of Indian people by providing them an equitable access to clean and affordable energy will continue to remain basis for building New India.
  • Energy is a key enabler in supporting India’s economic growth and seeing to fruition aspirations of growing middle class.
  • India’s energy demand would grow three-fold by 2040.
  • Under COP21, India has made voluntary commitments to reduce the emission intensity of GDP by 33% by 2030 as compared to 2005 levels.
  • Moving towards gas based economy is a critical step towards achieving COP21 targets.
  • Largest ever roll-out of city gas distribution networks across India has been undertaken to enable inclusive growth.
  • Work is underway on 2600 km long Jagdishpur-Haldia and Bokaro-Dhamra pipeline project also known as Pradhan Mantri Urja Ganga project.
  • Indradhanush Gas Grid Ltd has been formed to lay 1500 km pipeline with an investment of 6000 cr in order to connect north eastern states with gas grid.
  • Work on the new LNG terminals of Ennore in Tamil Nadu and Dhamra in Odisha at a cost of 10000 crore are under progress in speedy manner and soon these would become hub for supplying imported gas to eastern and southern states of country.
  • Pradhan Mantri Ujjwala Yojana has transformed the life of over 6 crore poor women.
  • Additional 12.5 crore LPG connections have been given in last 4 years taking our LPG coverage today to 90% from 55% in 2014.
  • Ujjwala Yojana has brought about multiple positive benefits in the form of health, economic empowerment and environmental benefits.
  • Government has launched a scheme to produce Bio CNG by setting up 5000 Bio-CNG plants in next five years.
  • These plants will help tackle the problem of agricultural waste burning and bring monetary benefits to farmers.
  • Government has made significant increase in ethanol procurement price for blending program to support sugarcane farmers.
  • Work is also underway to establish 12 modern bio-refineries at a cost of 10,000 crore to produce 2nd generation ethanol.
  • A bold decision has been taken to directly leapfrog to BS-VI by 2020 from BS-IV.
  • BS VI quality fuel has already been introduced in national capital Delhi from April 2018 itself.
  • In upstream sector the government has given impetus to acquisition and development of overseas equity oil and gas assets.
  • Our recent efforts to jointly develop oil and gas projects in Russia’s Arctic shelf and Pechora and Okhotsk Seas during Russian President Vladimir Putin’ visit is a testimony to this.
  • Government has made major changes to address dwindling domestic oil and gas production.
  • Most transformative reform in the exploration and production sector is moving to a revenue sharing model and opening the entire sedimentary basin to investors through open acreage licensing.
  • Various relaxations have been provided under the existing PSCs to provide adequate flexibility to operators to enable early development of discoveries.
  • Centralized National Data Repository (NDR) with visualization facilities, for all the E&P data pertaining to the entire sedimentary basin area has been set up.
  • Fiscal incentives have been provided to operators for adopting advanced techniques for enhanced recovery of oil and gas.
  • Complete marketing and pricing freedom has been given to gas producers under HELP, DSF and CBM regime and higher price ceiling for production from HP-HT, Deepwater and Ultra Deepwater fields.
  • Gas trading hub that will allow easy and ready access to gas suppliers and buyers to freely trade natural gas and in turn help India to develop its own hub based pricing would set up soon.
  • Global investor industry is today keenly looking at Indian energy sector as an attractive investment destination.
  • About 300 billion dollars would be invested in coming decade.
  • Asia’s biggest green oil refinery cum-petrochemical complex is being set up in the state of Maharashtra at a cost of about $ 40 billion dollars by OMCs along with Saudi Aramco and ADNOC.
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