Procurement of Ethanol by Oil Marketing Companies

Procurement of Ethanol by Oil Marketing Companies
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that the requirement of ethanol for 5 per cent blending with petrol is 133 crores litres and for 10 per cent blending 266 crore litres for the sugar year 2015-16. Against the tender floated, offers of 120 crore litres of ethanol have been received by Oil Marketing Companies (OMCs). One more Expression of Interest (EoI) has been floated to procure remaining quantity.

In order to improve the availability of ethanol, the Government has fixed the price of ethanol in the range of Rs. 48.50 to Rs. 49.50 per litre, on 10th December, 2014. Further, ethanol produced from other non-food feedstocks besides molasses, like cellulosic and ligno-cellulosic materials including petrochemical route, has also been allowed to be procured, subject to meeting the relevant BIS specifications.

In addition, the procurement process of ethanol has been simplified by OMCs.

Fixation of ethanol price based on distance, has encouraged movement of ethanol to longer distances, including States having lack of distilleries.

Policy Initiatives for Enhancing Indigenous Production of Oil and Gas

            The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that in order to accelerate the pace of exploration and enhance production of oil and gas in the country, the Government has taken various policy initiatives which are as under:

§   Early monetization of discoveries
§  Appraisal of about 1.5 million sq. km un-appraised area of the Indian Sedimentary Basins.
§  Re-assessment of Hydrocarbon Resources.
§  Setting up of National Data Repository.
§  Policy for exploration and exploitation of Shale Gas/Shale Oil resources by NOCs under the Nomination Regime.
§  Policy for exploration in the Mining Lease (ML) areas after the expiry of exploration period.
§  Offering of exploration blocks through bidding round.
§  Policy on Non-exclusive Multi-client Speculative Survey for assessment of unexplored sedimentary basins.
§  Policy framework for relaxations, extensions and clarifications at the development and production stage under the PSC regime for early monetisation of hydrocarbon discoveries.
§  Policy on Testing Requirements for Discoveries under New Exploration & Licensing Policy (NELP) Blocks
§  Use of modern technology for maximizing production from mature fields.
§  Improving recovery factor.

Consumption of Petrol, Diesel and LPG for the last five years is given below:
(All Figures are in TMT)
2015-16 (Apr-Jan)

The Government has initiated various steps to promote conservation of petroleum products in the transport, industrial, agricultural and domestic sectors. These include adoption of measures and practices which are conducive to increase fuel efficiency and training programme in the transport sector; modernisation of boilers, furnaces and other oil operated equipment with efficient ones and promotion of fuel efficient practices and equipment in the industrial sector; standardisation of fuel efficient irrigation pump sets and rectification of existing pump sets to make them more energy efficient in the agricultural sector and development as well as promotion of the use of fuel efficient equipment and appliances like kerosene and LPG stoves in the household sector. These activities are promoted and coordinated by the Petroleum Conservation Research Association (PCRA) and Oil Marketing Companies under the guidance and supervision of Ministry of Petroleum & Natural Gas.

Online Initiative for LPG Distribution
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that online services to LPG consumers are provided through which provides various services under single umbrella such as Web Booking with online payments, Online application for New LPG connections with only payments (Sahaj), Online facility for Double Bottle Connection Booking, Preferred time delivery, Online Portability, Locating nearest LPG distributor online on Google maps, Online request for Mechanic service, Information on 5 Kg Free Trade LPG (FTL), LPG connection for Piped-Natural-Gas consumers, Online Surrender Connection request, enrolment to “GiveItUp” subsidy, Rating of Distributors, Submission of Feedback/Grievances, View Important contact information and Transparency portal.

Also, consumers are provided with Mobile applications for online transactions.

On line initiatives taken by the Government are proving effective as substantial number of consumers are using these facilities. More than 2 lakh LPG connections have been issued using on-line facility and approx. 10 lakh LPG consumers have booked refills by using this facility. Moreover, nearly 1.15 lakh consumers used on-line logging to voluntarily opt out of subsidy under ‘GiveItUp’ campaign.

Discussion forums have been launched and are available on and LPG consumers/citizens participate and share their thought on the forum online. Valuable suggestions/comments are welcomed and are considered for improving the customer oriented services.

Gas Pipeline Project of Gail in Tamil Nadu
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that a representation was received from the Tamil Nadu Farmers Livelihood Protection Group in the year 2012 opposing the acquisition of land for laying of gas pipeline by GAIL (India) Limited in the State of Tamil Nadu. A clarification was sent to them that only Right of Use in land is being acquired for laying of pipeline and after completion of the process of laying of pipeline, the land will be returned to the land owner for agricultural activities. Further, it was also clarified that the laying of cross country pipeline along the highway is not technically feasible for the reason of security, maintenance of pipeline and disruption of Highways. Later, GAIL (India) Limited was instructed by the Government of Tamil Nadu vide communication dated 2.4.2013, for laying pipeline alongside the National Highways without affecting the agricultural lands of the farmers of Tamil Nadu. GAIL had challenged the above order of Government of Tamil Nadu (GOTN) in the Hon’ble Madras High Court which quashed the order of GOTN vide its judgment dated 25.11.2013. The above order of the Madras High Court was challenged by the Government of Tamil Nadu in the Hon’ble Supreme Court and the same was dismissed vide judgment dated 2.2.2016. The Hon’ble Supreme Court ordered the State Government of Tamil Nadu to fix market value of land as on 1.1.2016 for the Right of Use (RoU) compensation purpose.

The ownership of the land remains with the land owner and RoU of land is acquired for laying of gas pipeline and after laying the pipeline, the land is restored back in original condition to the land owner. Compensation is paid to the land owner as per Petroleum & Minerals Pipelines Act and the Hon’ble Supreme Court have ordered that the RoU compensation against land will be 10% of market value as on 1.1.2016 + 30% Solatium. Farmers can continue agricultural activities after the restoration of land and only construction of permanent structure, plantation of deep rooted trees are not allowed in the acquired RoU and as such there will be no adverse effect to the interest of the farmers.


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