Priority for stepping up indigenous oil output

By Our Staff Correspondent

GUWAHATI, APRIL 8. The Centre is giving topmost priority to step up indigenous oil production which has remained stagnant in the last 10 to 15 years. This was stated by the Union Minister for Petroleum and Natural Gas, Mr. Ram Naik, at a press meet here today.

He said indigenous production met only 30 per cent of the demand for petroleum products. The balance 70 per cent is imported. And the demand is going up by 10 to 15 per cent annually. Last year the country spent a whopping Rs. 59,000 crores for import on this account. Increasing domestic production has thus become a paramount necessity.

The Minister said under the New Exploration Licensing Policy (NELP), the Government finalised 25 blocks for exploration in January this year. Of these, 23 are offshore - 16 in deep sea and seven in shallow sea waters - and two are onshore, including one in Arunachal Pradesh. The tenders would be opened in Delhi on April 12. Though Assam is the second largest oil-producing State, no block in Assam could be included for exploration as the State Government has not approved the NELP.However, this year the Centre would invest Rs. 1,200 crores in Assam refineries and oilfields so that they give more economical returns.

Mr. Naik said in January this year the oil royalty for the States was raised to Rs. 750 per tonne. But the two major oil-producing States, Gujarat and Assam, raised certain points which, if accepted, would marginally increase the royalty. A committee has been set up to take a final decision after consulting the two States.

The waiting list of cooking gas connections in the entire north- eastern region - 34,000 in Assam alone - would be liquidated by June end, the Minister said.

He said a sum of Rs. 5,400 crores was collected last year as road cess levied at the rate of one rupee, per litre of petrol and diesel. A Bill will be introduced in Parliament for utilising the cess in the following manner: 50 per cent for development of rural roads, 15 per cent for State Highways, 30 per cent for National Highways and five per cent for developing unmanned level crossings.

A separate organisation would be set up for maintenance of the National Highways, he said.

Also the relevant law will be amended to include LPG as a fuel for motor vehicles. LPG will not only be cheaper but eco-friendly as well, unlike petrol and diesel which increase pollution. Mr. Naik, currently on a visit to Assam, Meghalaya and Arunachal, will formally inaugurate the marketing terminal of the Numaligarh Refinery tomorrow. Assam will get an additional Rs. 90 crore as sales sales tax from this terminal.

The Minister, who had a detailed discussion today with the Assam Chief Minister, Mr. P. K. Mahanta, said a high-power committee, headed by the Chief Secretary of Assam and with the Union Petroleum Secretary and representatives of different PSUs as members was being set up to sort out the points raised at today's meeting by the State and the Central officials.

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