The Hindu Business Line : We must tap every possible source for energy security, says Aiyar

FOCUSSING on the importance of ensuring energy security, the Union Minister for Petroleum & Natural Gas and Panchayati Raj, Mr Mani Shankar Aiyar, has said the full scope of attaining oil and gas equity, both in India and abroad, would be tapped.

He also said that, subject to necessary clearances from the Defence authorities, the exploration of two blocks in the southern part of Andaman & Nicobar Islands "might be proposed" under the New Exploration & Licensing Policy V.

Earlier, under the New Exploration & Licensing Policy IV, two blocks in the northern part of the islands have been awarded to Oil & Natural Gas Corporation. At a function held at the National Cellular Jail Memorial here on Monday — the anniversary of the Quit India movement — Mr Aiyar dedicated to the nation the Swatantrya Jyoti (monumental homage to the supreme spirit of freedom). The Swatantrya has been set up and funded by the Indian Oil Foundation.

Speaking to presspersons after the function, he said at the present rate of growth, India's oil security quotient (reliance on domestic sources of oil) would go down to 15 per cent by 2020 from 30 per cent at present. In view of this, it is essential that the country tap every possible source of oil and gas energy. In this context, he said that oil companies — upstream, retail, et al — should pool their resources and "synergise" their expertise with a view to achieving a common objective. "We will pursue and back, subject to environmental and Defence clearances, all initiatives taken to ensure energy security," he said. According to him, a move has been initiated to ensure that domestic oil companies present a "strong and united face" when they bid for projects in global markets. Hitherto, different Indian oil companies were competing with each other in global bidding.

"The problems have been identified and we have asked oil companies to present a more united face," he said, adding that they would soon put up for the Government's perusal different options in this regard.

Asked if a merger of domestic oil companies was in the offing, Mr Aiyar said the Government was committed to fulfilling the Common Minimum Programme of having strong and efficient public sector undertakings.

"One dimension to this might be restructuring. However, no proposal in this regard has been received or initiated. We must think boldly and imaginatively to convert our PSUs into oil powerhouses."

On whether domestic oil prices would be hiked yet again in view of rising prices in the global market, he said that the pricing system was based on import parity price and, hence, was linked to global prices. However, it should be possible to work out a formula whereby the burden of a rise in global oil prices is shared "equitably" between consumers, oil companies and the Government. He said the price band system was the best that could be devised under the circumstances in keeping with the `human face of reforms'.

Mr Aiyar said Indian Oil Corporation had initiated discussions with the Andaman & Nicobar Islands administration on expanding its presence in the islands here. This would facilitate generation of employment as well. Earlier, in his address at the function, the local Member of Parliament, Mr Manoranjan Bhakta, referred to unemployment as a major problem in the area.