Kelkar Committee to look at ways to raise oil, gas production

Petroleum Ministry has appointed a committee under economist Vijay Kelkar to prepare a roadmap for enhancing domestic production of oil and gas so as to substantially reduce the nation's import dependency by 2030.

India currently imports 80% of its oil needs and about half of its natural gas requirement. Oil Minister M Veerappa Moily wants to cut down reliance on imports to half.

Towards this objective, the ministry "constituted a Committee headed by Dr Vijay Kelkar to prepare a roadmap for enhancing domestic production of oil and gas and sustainable reduction in import dependency by 2030," an official statement said.

The Committee has been asked to submit its report to the government within six months.

India produces around 33 million tonne crude, which is enough to meet just about 20% of the demand for fuel. Natural gas production at 114 million standard cubic meters per day is just half of the demand.

The panel has been asked to suggests "steps to be taken for enhancing domestic oil and gas production from the unconventional energy sources and institutional mechanism (required) for appraisal of Indian sedimentary basins to the extent of 75% by 2015 and 100% by 2025.

It has also been asked to suggest "utilisation of Oil Industry Development Board (OIDB) cess and other innovative resource mobilisation approaches for appraising the unexplored /partly explored acreages and development and promotion of Indigenous service industry in E & P sector."

The Committee would also review institutional mechanism for acquisition of oil and gas assets abroad as well as pursuing diplomatic and political initiatives for import of gas from neighbouring and other countries with emphasis on transnational gas pipelines.

Besides, steps to be taken for ensuring adequacy of finances for R&D required for building knowledge infrastructure in E&P activities and steps to be taken for development of gas transportation infrastructure for establishing countrywide marketplace are also included in its terms of reference.

"Comments, suggestions and inputs on the Terms of References of the Committee are solicited from various stakeholders, interested persons and members of public. The comments may be submitted, latest by April 19," the statement added.