+
Government Initiatives to Cut Reliance on Crude Oil Imports
OIL & GAS

Government Initiatives to Cut Reliance on Crude Oil Imports

The government has implemented several initiatives to reduce reliance on imported crude oil and enhance domestic oil and gas production. These measures include policies such as the Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries (2014), the Discovered Small Field Policy (2015), and the Hydrocarbon Exploration and Licensing Policy (HELP) (2016). Other key initiatives include the extension of PSCs (2016, 2017), the early monetization of Coal Bed Methane (2017), and the establishment of the National Data Repository (2017). Additional efforts include the appraisal of unassessed sedimentary basins under the National Seismic Programme (2017), incentives for enhanced recovery methods (2018), and reforms in natural gas marketing (2020). Moreover, the government has introduced lower royalty rates, relaxed revenue-sharing mechanisms, and released significant offshore areas for exploration.

To address fuel pricing challenges and mitigate the impact of global crude oil price fluctuations, various steps have been taken. The government reduced central excise duties on petrol and diesel in 2021 and 2022, with state governments also adjusting VAT rates. In 2024, Oil Marketing Companies (OMCs) reduced petrol and diesel prices by Rs 2 per litre. Other strategies include diversifying crude imports, enhancing ethanol blending, and rationalizing freight costs to benefit remote consumers. Subsidised LPG cylinders are provided to over 100.33 million PM Ujjwala Yojana beneficiaries, with additional state-level subsidies.

Public Sector Undertakings (PSUs) in the oil and gas sector are actively working toward achieving net-zero emissions. Their strategies include the adoption of cleaner fuels, implementation of Bharat Stage VI norms, biofuel promotion, expansion of gas-based energy, and investments in green hydrogen and EV infrastructure. Ethanol blending has significantly reduced CO2 emissions, and the Pradhan Mantri JI-VAN Yojana is supporting advanced biofuel projects to further enhance sustainability in the energy sector.

News source: PIB

The government has implemented several initiatives to reduce reliance on imported crude oil and enhance domestic oil and gas production. These measures include policies such as the Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries (2014), the Discovered Small Field Policy (2015), and the Hydrocarbon Exploration and Licensing Policy (HELP) (2016). Other key initiatives include the extension of PSCs (2016, 2017), the early monetization of Coal Bed Methane (2017), and the establishment of the National Data Repository (2017). Additional efforts include the appraisal of unassessed sedimentary basins under the National Seismic Programme (2017), incentives for enhanced recovery methods (2018), and reforms in natural gas marketing (2020). Moreover, the government has introduced lower royalty rates, relaxed revenue-sharing mechanisms, and released significant offshore areas for exploration. To address fuel pricing challenges and mitigate the impact of global crude oil price fluctuations, various steps have been taken. The government reduced central excise duties on petrol and diesel in 2021 and 2022, with state governments also adjusting VAT rates. In 2024, Oil Marketing Companies (OMCs) reduced petrol and diesel prices by Rs 2 per litre. Other strategies include diversifying crude imports, enhancing ethanol blending, and rationalizing freight costs to benefit remote consumers. Subsidised LPG cylinders are provided to over 100.33 million PM Ujjwala Yojana beneficiaries, with additional state-level subsidies. Public Sector Undertakings (PSUs) in the oil and gas sector are actively working toward achieving net-zero emissions. Their strategies include the adoption of cleaner fuels, implementation of Bharat Stage VI norms, biofuel promotion, expansion of gas-based energy, and investments in green hydrogen and EV infrastructure. Ethanol blending has significantly reduced CO2 emissions, and the Pradhan Mantri JI-VAN Yojana is supporting advanced biofuel projects to further enhance sustainability in the energy sector. News source: PIB

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?