The government is likely to import 1.73 million tonne of LPG in the current fiscal to meet domestic demand even as the country will continue to depend on overseas supply for the next couple of years.Domestic production of LPG by oil companies, both private and public, during FY07 was 8.454 million tonne as against the demand of 9.75 million tonne, Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply in the Rajya Sabha today.The country imported 2.29 million tonne of LPG in FY07, down from 2.88 million tonne in the previous fiscal.This year the LPG import has been pegged at 1.73 million tonne, while for the next fiscal it has been put at 1.55 million tonne."In order to reduce import, domestic production of LPG in the country is sought to be increased through refinery expansion or modernisation plans, implementation of LPG maximisation project and enhanced capacity utilisation as also through supply of piped natural gas," he said.The LPG deficit will reduce to 1,00,000 tonne by FY12 from 2.29 million tonne in FY07, he added.To another question, Patel said ONGC is exploring feasibility and undertaking due diligence for setting up an optimum capacity well-head refinery in Rajasthan."ONGC has informed that fiscal incentives of the oder of Rs 1,300 crore per annum for 15 years would be needed to make the 7.5 million tonne per annum project viable," he said.The matter was being discussed between ONGC and the state government, he said, adding that ONGC was continuing optimisation studies for improving techno-commercial viability of the refinery.
