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ONGC to invest Rs 500 cr in renewable energy R&D

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BS Reporter Bangalore
Last Updated : Jan 21 2013 | 6:21 AM IST

To tap non-conventional sources to achieve energy security

Oil and Natural Gas Corporation (ONGC), India’s largest state-run oil exploration company, will invest Rs 500 crore on research and development in the areas of non-conventional energy sources, a top official said.

“Achieving energy security for the country was a major challenge to sustain a high growth rate. India is having only 0.5 per cent of the world’s hydrocarbon reserves and it would be difficult to meet the growing energy demand unless alternative and renewable sources were tapped and utilised to minimise our dependency on non-renewable resources like fossil fuels,” said ONGC Chairman and Managing Director R S Sharma.

Addressing India Inc at the National Quality Summit 2010 organised by the Confederation of Indian Industry (CII), here, he said as part of its efforts to achieve energy security for the nation, ONGC has ventured into exploration of shale gas reserves. It is also engaged in tapping non-conventional energy sources like solar, thermal energy, LED (light emitting diode) and fuel cells that emits less carbon.

Sharma said ONGC has also set up a 150 Mw wind power plant and the company’s board has recently approved setting up of another 100 Mw wind energy plant. “We are looking at other natural sources to meet the growing energy needs of the country.”

“As it would be difficult to meet the increasing energy demand from non-renewable resources such as hydrocarbons, there is an urgent need to shift generation and consumption patterns to renewable sources such as hydel, wind, solar and nuclear fuel,” said Sharma.

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Though India was about 70 per cent self-sufficient in exploring hydrocarbons and energy fuels during the mid-seventies, the phenomenal demand growth since then has resulted in importing a whopping 80 per cent of its energy needs. In the meantime, domestic production has declined to 20 per cent of the total demand, he observed.

He said India’s ability to sustain high growth rate would be determined by the pace of infrastructure development and stability in the country. “Infrastructure development pace and social-political stability in the country will be key to sustain the high growth rate,” Sharma said.

“If the country’s gross domestic product (GDP) had to grow over nine per cent per annum, infrastructure bottlenecks should be removed forthwith.

Our infrastructure growth has been tardy and rumbling on for years. Like an elephant, it can stumble also. Unless we fix the inherent problems such as land acquisition and time-consuming procedures, early execution of various projects will remain a challenge,” said Sharma in his address at the opening plenary of the three-day annual Quality Summit.

He also recalled the negative publicity India had across the world over the inordinate delays in completing infrastructure facilities for the 19th Commonwealth Games in New Delhi last month.

‘Populism affecting growth’
PTI adds: Sharma slammed politicians opposing land acquisition for ‘populism’ and said such ideologies, along with poor infrastructure and lack of inclusive growth, would affect India’s quest for sustained economic progress. “Indian democracy (political interference) that comes (in the way) is a stumbling block (for infrastructure growth),” he added.

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First Published: Nov 19 2010 | 12:32 AM IST

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