SME Times News Bureau | 21 May, 2019
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
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.