Keen to revive investor interest in oil and gas sector, Petroleum Minister Dharmendra Pradhan today promised policy interventions to make the sector fair, transparent and attractive to investors.
Speaking at the launch of International Energy Agency’s special ‘India Energy Outlook’ report, he said the government is determined to provide universal access to reliable and affordable energy to all sections of people.
“We are keen to make India’s oil and gas sector fair, transparent and attractive for domestic and foreign investors through appropriate policy, regulatory and fiscal interventions,” he said.
India’s rapidly rising energy stature globally is well—deserved, he said, adding that with a large economy, growing population with low per capita energy consumption, an expanding middle—class and increasing urbanisation, there is only one way for India’s energy demands to go —— that is up.
Pradhan said IEA’s World Energy Outlook 2015 states that by 2040 India’s energy demand will be close to that of the United States, even though demand per capita will still remain 40 per cent below the world average.
The report estimates an investment of $2.8 trillion is required in India’s energy sector and projects country’s oil import dependence to increase above 90 per cent by 2040.
“In line with the vision of Prime Minister, we want to cut down India’s import dependence for domestic energy needs by 10 per cent in the next 6—7 years,” he said.
Pradhan said developing Asian countries including China and India account for almost 50 per cent of rise in global gas demand and 75 per cent of the increase in LNG imports.
“We are pursuing several petroleum sector—specific measures under ‘Clean India’ initiative,” he said, adding that use of CNG as fuel in automobiles and piped cooking gas for cooking purposes in cities is being promoted.
The government’s bio—fuel programme has resulted in mandatory 5 per cent ethanol blending in petrol while 5 per cent bio—diesel blending in diesel has already started in 18 cities, he said.
“In a major push towards sustainable development, we have increased targets for renewable energy capacity addition to 175 gigawatts by 2021—22 which will result in reduction of over 326 million tons of carbon dioxide equivalent per year,” he said.