Indias crude oil imports are estimated to record an over 66 per cent increase in the next five years, resulting in a more than doubling of the oil import bill at $10.25 billion by 2001-02.
In the process, Indias oil import dependence will go up from 60 per cent now to 70 per cent in the Ninth Plan period, necessitating the import of 83 million tonnes (MTOE) of oil equivalent in the terminal year of the Plan from about 50 MTOE in 1996-97.
Going by the Planning Commissions Ninth Plan energy scenario, the oil demand in the country will shoot from 83.9 MTOE to 120 MTOE, whereas domestic production would grow marginally from 33.87 MTOE to 37 MTOE.
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In a presentation before Prime Minister Inder Kumar Gujral, the Commission said there could be an additional requirement of upto three billion dollars for importing liquid fuel for power generation, commission sources said.
Less than half of the Rs 1,32,652 crore investment needed in the oil sector in the Ninth Plan could be generated from the internal resources of national oil companies, the Commission said while suggesting price deregulation to bridge the gap alongwith other extra-budgetary resources. During the Ninth Plan period, the internal resources of the oil companies are estimated at Rs 63,924 crore, thus, leaving a resource gap of Rs 68,728 crore, the presentation