Ministry of Petroleum and Natural Gas

About Ministry

• The Ministry of Petroleum & Natural Gas is concerned with exploration and production of Oil & Natural Gas, refining, distribution and marketing, import, export and conservation of petroleum products.
• Oil and Gas being the important import for our economy, many initiatives have been taken by the Ministry for increasing production and exploitation of all domestic petroleum resources to address the priorities like Energy Access, Energy Efficiency, Energy Sustainability and Energy Security.
• Important areas of work allocated to the Ministry of Petroleum and Natural Gas includes –

• • Exploration and exploitation of petroleum resources, including natural gas.
  • Production, supply distribution, marketing and pricing of petroleum including natural gas and petroleum products.
  • Oil refineries, including Lube plants.
  • Additives for petroleum and petroleum products.
  • Lube blending and greases.
  • Planning, development and control of, and assistance to all industries dealt with by the Ministry.
  • All attached or subordinate offices or other organisations concerned with any of the subject specified in this list.
  • Planning, development and regulation of oilfield services.
  • Public sector projects failing under the subjects included in this list,
  • Engineers India limited and IBP Company. together with its subsidiaries, except such projects as are specifically allotted to any other Ministry/Dept,
  • Administration of various Central laws relating to Petroleum and Natural Gas

 

PRADHAN MANTRI UJJWALA YOJANA (PMUY)

Objectives

• • To provide 8 Crore (earlier target was 5 crore) deposit free LPG connections to women from BPL households to be achieved by 2020 (earlier target year was 2019).

Intended benefits

• • Any Below Poverty Line (BPL) family, whose information is included in the district BPL list prepared by the State government.
  • Launch of this scheme will also provide a great boost to the ‘Make in India’ campaign as all the manufacturers of cylinders, gas stoves, regulators, and gas hose are domestic.
  • Premature deaths will be prevented as Indoor air pollution is responsible for a significant number of acute respiratory illnesses in young children and women.

Salient Features

• • Recently, Ministry of Petroleum and Natural Gas has extended the scope of beneficiaries, it will cover all the poor households of the country. Under this, new beneficiaries will be those among holders of both ration cards and Aadhaar, who will identify themselves as poor through self-declaration.
  • LPG Connection is released in the name of adult woman of the BPL Family, subject to the condition that no LPG connection exists in the name of any family member of the household.
  • Central Government will provide financial support of Rs 1600 for each LPG connection.
  • Consumers will have the option to purchase gas stove and refills on EMI (zero interest), recovered through LPG subsidy received by the beneficiary. No recovery of loan is effecting for initial 6 refills.

 

PRADHAN MANTRI LPG PANCHAYAT SCHEME

Objectives

• • The panchayat will be used as a backup for PMUY.
  • To distribute LPG connections among rural areas where conventional fuel is used for domestic purposes.
  • To resolve issues and wrong traditional beliefs among people through officials of oil PSUs, NGOs, Asha workers and other social

Salient Features

• • It is an interactive communication platform for rural LPG users on various subjects like safe usage of LPG, its benefit to environment, women empowerment and women health, and also use the forum to motivate the consumers to use LPG regularly as a clean cooking fuel.
  • One lakh LPG Panchayats would be activated across the country during next one and a half years. One panchayat will have around 100 LPG customers of nearby areas.
  • The idea of this platform is to trigger a discussion through sharing of personal experiences on the benefits of use of clean fuel compared to traditional fuels like cowdung, charcoal, or wood.

 

PRADHAN MANTRI JI-VAN (JAIV INDHAN- VATAVARAN ANUKOOL FASAL AWASHESH NIVARAN) YOJANA

Objectives

• • To create Second Generation (2G) Ethanol capacity in the country and attract investments in this new sector.

Salient Features

• • It will provide financial support to Integrated Bioethanol Projects using lignocellulosic biomass and other renewable feedstock.
  • 12 commercial scale and 10 demonstration scale 2G ethanol projects will be provided viability gap funding support over the next six years in two phases.
  • The scheme focuses to incentivise 2G Ethanol sector and support this nascent industry by and creating a suitable ecosystem for setting up commercial projects and increasing Research & Development in this area.
  • Centre for High Technology (CHT), a technical body under the aegis of Ministry of Petroleum and Natural Gas, will be the implementation Agency for the scheme.
  • The ethanol produced by the scheme beneficiaries will be mandatorily supplied to Oil Marketing Companies (OMCs) to further enhance the blending percentage under Ethanol Blended Petrol (EBP) Programme.
    • 1. EBP programme was launched in 2003 for undertaking blending of ethanol in Petrol to address environmental concerns due to fossil fuel burning, provide remuneration to farmers, subsidize crude imports and achieve forex savings.
      2. Under EBP programme, OMCs are to blend upto 10% of ethanol in Petrol.
      3. The present policy allows procurement of ethanol produced from molasses and non-food feed stock like celluloses and lignocelluloses material including petrochemical route.

 

DIRECT BENEFIT TRANSFER IN PDS KEROSENE (DBTK) SCHEME

Objectives

• • To bring reforms in Allocation and Distribution of PDS
  • For better subsidy management
  • For reducing subsidy outgo by means of curbing diversion of subsidized kerosene.

Intended beneficiary

• • Kerosene Consumers of 33 districts identified by 9 State Governments namely, Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Gujarat.

Salient Features

• • Similar to PAHAL, the consumer will pay the non-subsidized price of kerosene at the time of purchase.
  • The amount of subsidy will be directly transferred to the bank account of the beneficiary.
  • An initial amount of subsidy shall be credited to all eligible beneficiaries to avoid any inconvenience during the initial non-subsidised purchase.
  • Implementing States will be given fiscal incentives equivalent to 75 % of subsidy saved in the first two years, 50 % of subsidy saved in third year and 25 % of subsidy saved in 4th year.
  • Further, States/ UTs are encouraged to become `Kerosene Free’ by bringing all households under LPG.
  • So far, 5 UTs i.e. Delhi, Chandigarh, Daman & Diu, Dadar and Nagar Haveli & Puducherry and three States i.e. Haryana, Andhra Pradesh & Punjab have become `Kerosene Free’. After Delhi, Chandigarh was the second city to become kerosene free.

 

#GiveItUp Campaign

Objective

• • aimed at motivating LPG users who can afford to pay the market price for LPG to voluntarily surrender their LPG subsidy.

Salient Feature

• • Domestic LPG is heavily subsidized by the Government of India and carries a substantial subsidy. This translates to a huge annual subsidy burden on the Government. 
  • Many able and aware citizens are not in favor of subsidies and would rather pay the full price for the products and, thereby they also make a personal contribution towards nation-building.
  • GiveItUp campaign has evoked huge response from socially committed individuals and has resulted in more than 1.04 crore consumers giving up their subsidy voluntarily.

 

PRATYAKSH HANSTANTRIT LABH (PAHAL)

Objectives

• • Remove incentive for diversion and Weed out fake/duplicate connections
  • Protect entitlement and ensure subsidy to the consumer.
  • Improve the availability/deliver y of LPG cylinders for genuine users
  • Allow Self Selection in subsidy.

Intended beneficiary

• • Consumers using LPG cylinders.
  • Government due to reduced leakages. Public money will be saved.
  • Oil marketing companies – as intermediaries are eliminated.

Salient Features

• • It is the world’s largest cash subsidy (added to Guinness Book of world records) under the Direct Benefit Transfer Scheme.
  • Domestic LPG cylinders will be sold to LPG consumers in the entire country at Market Determined Price (without subsidy). An advance payment will also as soon as a person books the first cylinder, to ensure that he has enough money to buy it at market price.
  • The total cash benefit applicable on LPG cylinder will then be transferred to the CTC (Cash Transfer Compliant) consumer for each subsidized cylinder delivered (up to the cap) as per his entitlement.
  • LPG consumers who do not wish to avail the LPG subsidy for LPG cylinders can simply choose to opt out of subsidy.
  • Consumers needs to have a bank account to receive the subsidy. This is facilitated by Jan Dhan. Also seeding the account with AADHAAR is manadatory for getting the benefits.

 

NATIONAL GAS GRID

Objectives

• • To remove regional imbalance within the country with regard to access of natural gas and provide clean and green fuel throughout the country.
  • To connect gas sources to major demand centres and ensure availability of gas to consumers in various sectors.
  • Development of City Gas Distribution Networks in various cities for supply of CNG and PNG.

Salient Features

• • At present, about 16000 Km long gas pipeline network is under operation and it has formed a partial gas grid by inter-connecting western, northern and south-eastern gas markets in the country.
  • To have a gas-based economy and enhance the share of gas in the energy basket to 15% from currently 6.5%, the Government has envisaged developing additional 15,000 km of gas pipeline network.
  • To provide the clean energy in the Eastern part of the country, the Government is running Pradhan Mantri Urja Ganga Project.
  • A pipeline of about 750 Km long from Barauni (Bihar) to Guwahati (Assam) will be the gateway to connect North-eastern States with existing gas grid. A Mini Gas Grid in North East covering 1,500 km and connecting all state capitals, is also being developed by a Joint Venture (JV) of 5 companies. This will also facilitate the completion and creation of a National Gas Grid.

 

CITY GAS DISTRIBUTION (CGD) NETWORK

Objectives

• • To promote the usage of environment friendly clean fuel i.e. natural gas as a fuel/feedstock across the country to move towards a gas based economy.

Salient Features

• • It is the interconnected network of pipelines to make supply of natural gas to domestic, industrial or commercial premises and CNG stations situated in a specified Geographical Area (GA).
  • CGD networks are being developed based on the availability of trunk gas pipeline connectivity or gas sources and techno-commercial feasibility in a GA.
  • It has been focused to increase the availability of cleaner cooking fuel (i.e. PNG) and transportation fuel (i.e. CNG) to the citizens of the country.
  • The expansion of CGD network will also benefit to industrial and commercial units by ensuring the uninterrupted supply of natural gas.

 

OTHER SCHEMES/INITIATIVES OF MINISTRY OF PETROLEUM AND NATURAL GAS

 

 

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