Major Policy initiatives to give a boost to Petroleum and Hydrocarbon Sector

Major Policy initiatives to give a boost to Petroleum and Hydrocarbon Sector

In a major policy drive to give a boost to petroleum and hydrocarbon sector, the Government has unveiled a series of initiatives. The Union Cabinet and the Cabinet Committee on Economic Affairs in its meeting today has taken the following decisions –

1.     Hydrocarbon Exploration Licensing Policy, HELP:  An innovative Policy for future which provides for a uniform licensing system to cover  all hydrocarbons such as oil, gas, coal bed methane etc. under a single licensing framework.

2.     Marketing and Pricing freedom for new gas production from Deepwater, Ultra Deepwater and High Pressure-High Temperature Areas.

3.     Policy for grant of extension to the Production Sharing Contracts for small, medium sized and discovered fields

4.     Cancellation of the Ratna offshore field award from ESSAR Oil Limited and assigning it to the original licensee, ONGC. .

Hydrocarbon Exploration Licensing Policy, HELP: Innovative Policy for future   

The present policy regime for exploration and production of oil and gas, known as New Exploration Licensing Policy (NELP), been in existence for 18 years. Over the years, various problems and issues have arisen.

Presently, there are separate policies and licenses for different hydrocarbons.  There are separate policy regimes for conventional oil and gas, coal-bed methane, shale oil and gas and gas hydrates.  Different fiscal terms are also in force for allocation of acreages for exploration for different hydrocarbons.  In practice, there is overlapping of resources between different contracts. Unconventional hydrocarbons (shale gas and shale oil) were unknown when NELP was framed. This fragmented policy framework leads to inefficiencies in exploiting natural resources. For example, while exploring for one type of hydrocarbon, if a different one is found, it will need separate licensing, adding to cost.

The Production Sharing Contracts (PSCs) under NELP are based on the principle of “profit sharing”.  When a contractor discovers oil or gas, he is expected to share with the Government the profit from his venture, as per the percentage given in his bid.  Until a profit is made, no share is given to Government, other than royalties and cesses.  Since the contract requires the profit to be measured, it becomes necessary for the cost to be accounted for and checked by the Government.  To prevent loss of Government revenue, these are requirements for Government approval at various stages to prevent the contractor from exaggerating the cost.  Activities cannot be commenced till the approval is given.  This process of approval of activities and cost gives the Government a lot of discretion and has become a major source of delays and disputes.  Many projects have been delayed for months and years due to disagreement between the Government and the contractor regarding the necessity or lack of necessity for particular items of cost, and the correctness of the cost.

Another feature of the current system is that exploration is confined to blocks which have been put on tender by the Government.  There are situations where exploration companies may themselves have information or interest regarding other areas where they may like to pursue exploration.  Currently these opportunities remain untapped, until and unless Government brings them to bidding at some stage.

The pricing of gas in the current system has undergone many changes and witnessed considerable litigation.  Currently, the producer price of gas is fixed administratively by the Government.  This has led to loss of revenue, a large number of disputes, arbitrations and court cases.

The current policy regime, in fixing royalties, does not distinguish between shallow water fields (where costs and risks are lower) and deep/ultra-deep water fields where risks and costs are much higher.

The country currently faces a situation where oil and gas constitutes a major and increasing share of total imports.  Oil production has stagnated while gas production has declined.  There is a need for concerted policy measures to stimulate domestic production.  Keeping in view this objective, the Government has enunciated a new policy regime for exploration licensing, the Hydrocarbon Exploration and Licensing Policy, HELP with the following key features:

·        There will be a uniform licensing system which will cover all hydrocarbons, i.e. oil, gas, coal bed methane etc. under a single license and policy framework.

·        Contracts will be based on “biddable revenue sharing”.  Bidders will be required to quote revenue sharein their bids and this will be a key parameter for selecting the winning bid.  They will quote a different share at two levels of revenue called “lower revenue point” and “higher revenue point”.  Revenue share for intermediate points will be calculated by linear interpolation.  The bidder giving the highest net present value of revenue share to the Government, as per transparent methodology, will get the maximum marks under this parameter.

·        An Open Acreage Licensing Policy will be implemented whereby a bidder may apply to the Government seeking exploration of any block not already covered by exploration.  The Government will examine the Expression of Interest and justification. If it is suitable for award, Govt. will call for competitive bids after obtaining necessary environmental and other clearances.  This will enable a faster coverage of the available geographical area.

·        A concessional royalty regime will be implemented for deep water and ultra-deep water areas.  These areas shall not have any royalty for the first seven years, and thereafter shall have a concessional royalty of 5% (in deep water areas) and 2% (in ultra-deep water areas).

·        In shallow water areas, the royalty rates shall be reduced from 10% to 7.5%.

·        The contractor will have freedom for pricing and marketing of gas produced in the domestic market on arms length basis.  To safeguard the Government revenue, the Government’s   share of profit will be calculated based on the higher of prevailing international crude price or actual price.

The new policy regime marks a generational shift and modernization of the oil and gas exploration policy. It is expected to stimulate new exploration activity for oil, gas and other hydrocarbons and eventually reduce import dependence.  It is also expected to create substantial new job opportunities in the petroleum sector.  The introduction of the concept of revenue sharing is a major step in the direction of “minimum government maximum governance”, as it will not be necessary for the Government to verify the costs incurred by the contractor. Marketing and pricing freedom will further simplify the process.  These will remove the discretion in the hands of the Government, reduce disputes, avoid opportunities for corruption, reduce administrative delays and thus stimulate growth.

Marketing and Pricing freedom for new gas production from Deepwater, Ultra Deep water and High Pressure-High Temperature Areas

          Imports of hydrocarbons occupy a large share of India’s total imports.  Currently, over three-quarters of the domestic requirement of crude oil and approximately a third of domestic requirement of gas are met through imports.  In terms of macro-economic impact and also in terms of energy security, it is of paramount importance that domestic production of hydrocarbons be increased.

Much of the unexploited oil and gas available in India is in areas characterized by deep water/ultra-deep water or high pressure/high temperature.  The Cabinet Committee on Economic Affairs approved a mechanism for pricing of domestically produced natural gason 18.10.2014. Recognizing the need for incentivizing gas production from deep water, ultra deep water and High Pressure-High Temperature (HPHT) areas on account of higher costs and higher risks involved in exploitation of gas from such areas, in principle approval was also given for a premium on the gas price for the gas to be produced from new discoveries from such areas.

          Subsequent to the decision of the CCEA, global oil and gas prices have fallen substantially and are currently at the lowest level for over a decade, affecting the attractiveness of the sector to potential investors.  There are a number of discoveries of gas in deep water/ultra- deep water, high pressure/high temperature areas which have not been developed. ONGC and other operators have been requesting a higher price for gas to be produced from such fields, without which they may not be economical to bring to production.  Meanwhile, domestic gas production is showing a declining trend.  It has witnessed a decline of 17% in two years from 40.66 BCM in 2012-13, it fell to 33.65 BCM in 2014-15. With the economy growing at over 7%, demand for petroleum products including gas is increasing.  The sector thus faces a situation of rising demand, falling production and consequently rapid increase in imports. 

          In this background, after extensive consultations, it was felt that rather than fixing a premium, it would be more appropriate to provide marketing and pricing freedom to the gas to be produced from the new discoveries as well as existing discoveries which are yet to commence production.  However, in order to protect user industries from market imperfections, this freedom would be accompanied by a price ceiling based on opportunity cost of imported fuels.

After a careful consideration of the country’s strategic, economic and environmental interests and interests of both producing and consuming industries, a new policy is being introduced which is balanced. The salient features of the new policy are as follows:

·              For all the discoveries in deep water/ultra-deep water/high temperature/ high pressure areas which are yet to commence commercial production as on 1.1.2016 and for all future discoveries in such areas, the producers will be allowed marketing freedom including pricing freedom.

·              To protect user industries from any market imperfections, this freedom would be subject to a ceiling price on the basis of landed price of alternative fuels.  To the extent that domestic gas can be produced and sold at a price below import parity price, it will not only benefit the overall economy by boosting employment and GDP and reducing imports, but also benefit the user industry by lowering the average price.

·              The ceiling shall be based on publicly available prices of substitute fuels and the method of calculation shall be communicated transparently.

·              The ceiling price shall be calculated as, lowest of the (i) Landed price of imported fuel oil (ii) Weighted average import landed price of substitute fuels (namely coal, fuel oil and naphtha) (iii) Landed price of imported LNG. The weighted average import landed price of substitute fuels in (ii) above will be defined as:  0.3 x price of coal + 0.4 x price of fuel oil + 0.3 x price of naphtha.

          The Ministry of Petroleum and Natural Gas will notify the periodic revision of gas price ceiling under these guidelines.

          In the case of existing discoveries which are yet to commence commercial production as on 1.1.2016, if there is pending arbitration or litigation filed by the contractors directly pertaining to gas pricing covering such fields, this policy guideline shall apply only on the conclusion/withdrawal of such litigation/arbitration and the attendant legal proceedings.

          All gas fields currently under production will continue to be governed by the pricing regime which is currently applicable to them.

          Production Enhancement:

The decision is expected to improve the viability of some of the discoveries already made in such areas and also would lead to monetization of future discoveries as well. The reserves which are expected to get monetized are of the order of 6.75 tcf or 190 BCM or around 35 mmscmd considering a production profile of 15 years. The associated reserves are valued at 28.35 Billion USD (1,80,000 Crore) The country’s present gas production is around 90 mmscmd. Besides, these there are around 10 discoveries which have been notified and whose potential is yet to be established.

There would be substantial employment generated during the development phase of these discoveries and a part of it would continue during the production phase of the block. As an illustration, ONGC has estimated that in the development of discoveries in the block KG-DWN-98/2, there would be deployment of 3850 direct skilled workers.  Besides, these there would be around 20000 persons required during the construction phase.  These personnel will take care of fabrication workshops, marine crew in barges, civil works of onshore terminal etc. 

Policy for grant of extension to the Production Sharing Contracts for small, medium sized and discovered fields

28 small, medium sized fields discovered by National Oil Companies (ONGC and OIL) were awarded to Private Joint Ventures through Production Sharing Contract (PSC) between 1994-1998 for periods varying from 18 to 25 years.  These Contracts are effective from different points of time.  The earliest of PSCs were signed in the year 1994.  Out of 28 PSCs, two fields in which the duration of the PSC had expired in 2013 had been granted extension up to 2018.  The remaining PSCs would start expiring from 2018.

For many of these fields the recoverable reserves are not likely to be produced within the remaining duration of contract.  Further, in certain fields where additional recovery of hydrocarbons can be obtained only through capital intensive Enhanced Oil Recovery/Improved Oil Recovery (EOR/IOR) Projects, the payback period would extend beyond the current duration of the contract.

A uniform and transparent policy for extension of the remaining reserves is required to be put in place to enable the contractors to take investment decisions for exploitation of the remaining reserves. It is expected to expedite decision making, enable timely planning by the contractors, and lead to increased oil and gas production.

          The following process and guidelines for extension of contracts for small and medium sized discovered fields is being put in place:

(i)                The contractor should submit the application for extension of Contract at least 2 years in advance of the expiry date, but not more than 6 years in advance. The Director General Hydrocarbons (DGH) will make a recommendation within 6 months of submission of application by the contractor. The Government will take a decision on the request for extension within 3 months of receipt of the proposal from DGH.

(ii)             The Government share of Profit Petroleum during the extended period of contract shall be 10% higher than the share as calculated using the normal PSC provisions in any year during the extended period. For example, if the current profit share, is 10 or 20%, it shall become 20 or 30% respectively.

(iii)           During the extended period of Contract, the royalty and cess shall be payable at prevailing rates and not at concessional rates stipulated in the contracts.

(iv)           The extension of these PSCs would be considered for 10 years both for oil and gas fields or economic life of the Field, whichever is earlier.

Production Enhancement:

The policy for PSC extension will lead to production of hydrocarbons beyond the present term of PSC. The reserves which are likely to get monetized during the extended period are of the order of 15.7 MMT of oil and 20.6 MMT of Oil Equivalent of gas. The reserves associated with this field would lead to monetization of reserves worth USD 8.25 Billion (around 53000 Crore). The monetization of these reserves would require an additional investment of USD 3 to 4 Billion.

Employment Generation Potential:

The extension of these contracts is expected to bring extra investments in the fields and would generate both direct (related to field operations) and indirect employment (related to service industry associated with these fields). 

The extension of contracts would also envisage that the present employment levels in these fields are maintained for a longer period of time.

Presently, medium sized fields are employing around 300 personnel for field operations while for small sized fields this would be around 40 to 60 persons.

The investments in these fields may also lead to construction and laying of facilities which would employ several unskilled labourers, over and above the skilled labourers.

Transparency and Minimum Government and Maximum Governance:

With a view to enable the E&P companies to take investment decisions for exploitation of the remaining reserves this extension policy has been approved so as to grant extensions in a fair and transparent manner.

The policy aims at bringing out clear terms of extension so that the resources can be expeditiously exploited in the interest of energy security of the country and improving the investment climate.

Ratna Field

The Ratna Offshore Field, located south-west of Mumbai, was discovered in 1971 by ONGC.  The field was tendered out and tentatively awarded to ESSAR Oil Ltd. in 1996.  Ever since then due to a number of administrative and legal uncertainties, which were raised and examined at various times,the contract was never finalized.  As this field has remained without exploitation for over 20 years since its initial tendering, the Government has now decided that it will be assigned to ONGC on nomination basis. This will enable this long pending and proven oil reserve to come into production, and create new employment.

NITI Aayog launches ‘Women Transforming India’ campaign, in partnership with the UN in India and MyGov - #WomenTransform

NITI Aayog launches ‘Women Transforming India’ campaign, in partnership with the UN in India and MyGov - #WomenTransform

Celebrating women doers, leaders and change makers from across the country, NITI Aayog - Government of India’s premier think-tank - has launched the ‘Women Transforming India’ initiative on, March 8, International Women’s Day, in partnership with the UN in India and MyGov.  

As a policy think tank, NITI Aayog seeks to engage directly with women leaders from across urban and rural areas of India. ‘Women Transforming India’ is, therefore, our effort at putting our ear to the ground to gather successful stories of change heralded by women at the grassroots level, within communities.

Through the initiative, NITI Aayog is seeking for entries in the form of written essays/stories (not exceeding 500 words), preferably accompanied by photographs that set a context to the narrative. These stories should reflect new ground broken by women in empowering themselves/others, or of challenging stereotypes.

Winning entries will receive a certificate of appreciation from NITI Aayog and the UN in India. Change makers may also have a chance to interact directly with policy makers in the Government of India, to enable affect positive policy action.

We seek to encourage and recognize women who have made a difference, particularly, by demonstrating leadership in the economic, socio-cultural and environmental front. Stories of change fostered through the setting up of small businesses/enterprises to generate livelihood opportunities for communities, challenging discriminatory practices/norms, or preserving the environment and responding to challenges of climate change are encouraged. Successes in leading change could have been achieved either through the use of technology or by employing innovating on-ground methods. 

Entries must be submitted online (https://mygov.in/task/women-transforming-india-womentransform/) on or before March 31^st, 2016.  A shortlist of 8-10 best entries by a jury will be put to poll on MyGov.in to determine the top three entries. The final winning entry will be determined by a jury constituted by NITI Aayog.  Spread across a period of over one month, the initiative will also sensitize citizens to gender issues and seek to promote gender equity and equality, through a variety of media.

‘Women Transforming India’ is consistent with the government’s renewed commitment to advancing gender equality. The many interventions including Beti Bachao Beti Padhao, Sukanya Samridhi Yojana, Janani Suraksha Yojana are testimony to its resolve to empower and educate of girls, and to tackle discrimination against girls and women.

This initiative is also a step forward in furthering the Sustainable Development Goals (SDGs), which have Gender as a stand-alone goal. NITI Aayog has been entrusted with the responsibility to plan, monitor and coordinate SDG efforts across Central Ministries and State governments.

Projects worth Rs. 1,20,000 Crore to be showcased before potential investors at Maritime India Summit 2016,

Projects worth Rs. 1,20,000 Crore to be showcased before potential investors at Maritime India Summit 2016, says Shri Nitin Gadkari

Union Minister of Shipping, Road Transport & Highways Shri Nitin Gadkari has said that projects in the ports and shipping sector, worth an  investment of Rs. 1,20,000 Crore will be showcased before potential investors at the Maritime India Summit to be held in Mumbai from 14-16 April, 2016. He was talking to news persons in New Delhi today on the occasion of Media Launch of Maritime India Summit, 2016. The Minister said that the focus of the Government is on creating more jobs in the maritime sector. He added that one crore jobs – 40 lakh direct and 60 lakh indirect -have been identified to be created in 27 port based industrial clusters, coastal shipping and inland waterways under Sagarmala project.

The Minister underlined that in order to improve manufacturing, there is need to increase exports. While expressing concern over high cost of logistics in India which is currently about 18%, the Minister said that by developing coastal shipping and inland waterways, the transportation cost can be substantially reduced which will reduce logistics cost and make our products more cost effective.

           Shri Gadkari gave details of major initiatives taken by the Government to develop the maritime sector. He said new ports have been announced at Wadhavan, Enayam (near Colachel) and Sagar with investment of Rs. 20,157 crore. In addition 27 projects with investment of Rs. 12,696 crore, adding capacity of 116 MTPA have been awarded in 2015-16 which include JNPT road connectivity (Rs.2,787 Cr) , Paradip mechanisation of coal berths (Rs. 1633 Cr) , Mumbai 5^th oil berth (Rs. 811 Cr) , Kandla container terminal (Rs. 263 Cr) , Kolkata FSRU (Rs. 3500 Cr) , Ennore capital dredging (Rs. 425 Cr), Paradip LPG Terminal (Rs. 690 Cr) , New Mangalore mechanization (Rs. 470 Cr) , Goa dredging (Rs. 194 Cr).

The Minister informed that 15 projects with investment of Rs. 6879 crore are to be awarded before 31^st March 2016 which include Goa conversion of iron ore berths to multipurpose berths in Mormugao Port(Rs. 1100 Cr), Ennore oil terminal (Rs. 700 Cr), Ennore capital dredging (Rs. 600 Cr) , Haldia floating POL facility (Rs.460 Cr), Mumbai FSRU (Rs. 2740). He said 32 projects with investment of Rs. 4351 crore and capacity of 70 MTPA have been completed in 2015-16 while 46 projects with investment of Rs. 28,040 crore with capacity of 307 MTPA are under implementation.

Speaking on the occasion Secretary, Shipping Sh. Rajive Kumar gave details of the Summit which is scheduled in Mumbai. The media launch marks the beginning of a month long campaign to publicize the event nationally and internationally through print, electronic and outdoor media. The objective is to attract potential investment in the rapidly transforming maritime sector.

Prior to today’s media launch, the Ministry of Shipping had organized MIS 2016 roadshows in Kolkata, Chennai, Hyderabad and Ahmedabad to highlight the growth potential of the maritime sector. The official website of the Summit, www.maritimeinvest.in, was also launched at Mumbai on 17^th February 2016 during the Make in India Week. The Minister has also held a meeting with the Ambassadors of all maritime nations, seeking their active participation in the summit and urging them to spread work about the event in their respective nations. The Republic of Korea is participating in MIS 2016 as a partner country.

This maiden flagship initiative of the Shipping Ministry aims to provide a unique platform for participants to explore potential business opportunities in the maritime sector. It will showcase exciting investment opportunities in the sector including Shipbuilding, Ship Repair and Ship Recycling, Port Modernization and New Port Development, Port-based Industrial Development, Port-based Smart Cities and Maritime Cluster Development, Hinterland Connectivity Projects and Multi-Modal Logistics Hubs, Inland Waterways and Coastal Shipping for Cargo and Passenger movement, Dredging, Lighthouse Tourism and Cruise Shipping and Renewable Energy Projects in Ports. An exhibition along with exclusive demo sessions will showcase the latest technology, products and services as well as help disseminate knowledge about the latest development in Maritime Sector. The event will also provide a platform for leading global Maritime organisations to explore business opportunities and create awareness amongst stakeholders about the emerging trends and opportunities in the maritime sector. It is expected that a large number of foreign delegates especially from the maritime nations such as South Korea, Norway, Singapore, UAE, UK, France and EU will attend the summit.

Science to be for Economic Growth and Employment Generation Now

Minister for Science & Technology and Earth Sciences, Dr Harsh Vardhan says Science to be for Economic Growth and Employment Generation Now

Union Minister of Science & Technology and Earth Sciences, Dr Harsh Vardhan has said that Science & Technology and innovation are planned to be used as tools for economic growth and employment generation. Accordingly the government has given priority to these areas across the Union Budget, he said. The Minister recalled as to how the Prime Minister while addressing the National Science Congress in Mysore, in January this year, had said that the good governance is also about integrating science and technology into the choices we make and the strategies we pursue. Accordingly the government even while taking measures to control overall fiscal deficit, had clearly increased budgets to various departments of the government in areas of Science & Technology.

Various Departments under his Ministries have embarked upon several collaborative projects on national priorities such as National Supercomputing Mission to ensure nations competitiveness in supercomputing with Department of Electronics and Information Technology; envisaged to implement IMPRINT projects with Ministry of Human Resource Development; shaping a joint R&D initiative to work in the areas of fuel efficiency and emission control technologies with Ministry of Railways (MoR); and working on R&D component of electric mobility mission with Department of Heavy industry.

Dr. Harsh Vardhan expressed satisfaction with budgetary allocations for his Ministries too for the ensuing financial year. The Minister said all in his ministries have been gearing up to work in a concerted and coordinated manner for the overall objective of higher economic growth, employment and social equity. Dr. Harsh Vardhan said that the Government under the leadership of the Prime Minister Shri Narendra Modi launched several Missions and his Ministries are working in a synergistic manner with the other Ministries to leverage these efforts, such as Make in India, Swasth Bharat, Swachh Bharat, Innovate in India, Start-up India and Stand-up India, among others. The focus is on Affordable Healthcare including Phyto-Pharmaceuticals & Bio-therapeutics, Food & Food Processing, Sustainable Energy, Affordable Housing along with Green Buildings, Advance & Nano-materials, Ocean Exploration, Climate Change, Weather Forecasting for Farmers and Fishermen, Wealth from Waste, Aroma & Herbals, Harnessing Ocean resources and genome programme livestock.

The Minister said that he himself had been calling upon the scientific community in all departments of his ministries to synergize their efforts to contribute to such challenging areas for human welfare. The Minister pointed out that this does not mean that there has been any de-emphasis on basic research. “You know the government is considering instituting the Laser Interferometer Gravitational-wave Observatory in India and intends to promote other basic research too” he added.

Allocations under Budgetary heads for promoting Innovation, Technology Development and Deployment in various departments have been raised many fold in the recent Union Budget. Major focus would be laid upon creating incubation facilities for spin-off and start-ups. The Minister said various departments would hand hold innovators so as to create a new segment of knowledgebase enterprises. This would help boost the economy step-by-step. Focus is also on some recently launched initiatives aimed at societal priorities such as Science & Technology of Yoga and Meditation (SATYAM) to explore the modern scientific roots of Indian traditional knowledge; advanced manufacturing for Make in India; and waste processing technology for Swachh Bharat.

Focus would also be on disease control and prevention through finding new and cheaper vaccines, increasing of agricultural production, animal health, furthering Medical Technology (Med-Tech) Innovations, solid waste management etc, A mission on Biotherapeutics called “Aroma Mission” will be launched soon, he added.

With increased allocations, besides further fathoming the secrets of the oceans, Agro-Meteorological Advisory service units to cover all farmers are to be expanded. Efforts are on to rope in various agencies, including NGOs at sub-district level for organizing awareness and training programs at Krishi Vigyan Kendras. Spatial and temporal resolutions of weather forecasts are to be increased with introduction of Now-casting (up to 3 hours) and Extended Range Forecasts (15-20days). A major thrust in the Union Budget for 2016-17 is to improve agricultural output and to increase the income of farmers as part of major effort to weather proof the Indian Agriculture. To facilitate the objective of helping the farming community including the farmers over the northeastern region, as envisaged in the Union Budget, the Ministry of Earth Sciences will be generating high resolution weather forecasts (10 km resolution), for which the exiting High Performance Computing facility will be upgraded to 10 Petaflop facility. It is planned to make critical procurement of Doppler Weather Radars for Himalayan States for improving the services over the Western Himalayan Hill states of Jammu & Kashmir; Himachal Pradesh and Uttarakhand. Ministry of Earth Sciences and CSIR are working together for developing indigenous airport meteorological instruments. 

India's Performance in Research is Impressive in Recent Years Says Minister for Science & Technology and Earth Sciences Dr. Harsh Vardhan

India's Performance in Research is Impressive in Recent Years Says Minister for Science & Technology and Earth Sciences Dr. Harsh Vardhan

India's performance in research is promising and impressive in recent years as is evident from the fact that India’s position globally in scientific publications, as per Scopus database, has improved from 12th position in 2005 to 6th position in 2013 with a growth rate of 13.4% as against the world average of 4.4% during 2005-2013.

This was stated by Union Minister for Science & Technology and Earth Sciences Dr. Harsh Vardhan in a written reply in Lok Sabha today.

In the field of nano-science and technology, India’s position has moved from 6th in 2011 to 3rd in 2013. Recent report of Springer Nature has indicated that India is ascending towards world-class science and our country is at 13th position globally on an index of world-class scientific journals. Between 2012 and 2014, Indian Chemistry research increased rapidly with a compound annual growth rate of 8.6% and it stood second only to the United States of America in terms of number of publications.

Government has instituted many schemes to promote indigenous talent of scientists for advancement of scientific research in the country. The Swarnajayanti Fellowship and Innovation in Science Pursuit for Inspired Research (INSPIRE), Faculty Scheme of Department of Science and Technology (DST), J.C Bose Fellowship of Science and Engineering Research Board and Shanti Swarup Bhatnagar Prize instituted by Council of Scientific and Industrial Research (CSIR) are all meant for recognition of indigenous talent and outstanding contribution of scientists to science and technology by Indian scientists. Some other measures taken by the Government to attract more and more talented scientists towards advancement of research include successive increase in plan allocations for Scientific Departments, offering attractive research fellowships, strengthening infrastructure for Research and Development (R&D) and implementing programs like Nano Mission, Solar Energy Research Initiative etc.

A total of 22100 persons has been granted financial assistance by the DST and Department of Biotechnology during the last three years including current year, the Minister said.

Dr. Harsh Vardhan also stated that there is no shortage of scientists and technologists in various research institutions/laboratories under the various departments of the Ministry of Science & Technology.

Government has taken various steps to create more institutions and strengthen facilities for higher education and research in the country. It has established 5 Indian Institute of Science, Education & Research (IISERs) at Pune, Mohali, Kolkata, Bhopal and Thiruvananthapuram on the lines of Indian Institute of Science (IISc), Bangalore. In addition, Government has also established 11 new autonomous S&T institutions under the Ministry of Science and Technology to undertake research in new and emerging areas of S&T such as National Innovation Foundation (NIF), Ahmedabad; Institute for Advanced Studies in Science and Technology (IASST), Guwahati; National Centre of Molecular Materials (NCMM), Thiruvananthapuram, National Agri Food Biotechnology Institute, Mohali, Translational Health Science and TechnologyInstitute, Faridabad, Regional Centre for Biotechnology, Faridabad etc apart from establishing Science and Engineering Research Board (SERB), an autonomous body by an Act of Parliament to promote scientific research in all frontline areas of science and engineering to academic institutions, research laboratories and other R&D organisations. Government has also approved setting up of new IITs, IIITs and universities in various states of the country.

To strengthen facilities in emerging and frontline S&T areas in academic institutions, Government has launched various schemes such as Fund for Improvement of S&T Infrastructure (FIST), DBT- BUILDER (DBT-Boost to University Inter-disciplinary Departments of Life Sciences for Education and Research), Promotion of University Research and Scientific Excellence (PURSE) with special S&T packages to spread R&D base for North-Eastern Region, J&K and Bihar etc.

National Innovation Foundation (NIF), Ahmedabad set up by the Department of Science & Technology in 2010 has been providing support to grassroots technological innovations and outstanding traditional knowledge in the country. NIF, Ahmedabad has built a database of more than 2,25,000 technological ideas, innovations and traditional knowledge practices from over 585 districts of the country. It has recognised more than 775 grass root innovators and school students at the national level apart from providing help in getting thousands of grass root technologies validated/ value added. It has also set up a Fabrication Laboratory for product development apart from strengthening in-house research and development facilities for the initial validation of herbal technologies resulting in filing of over 745 patents on behalf of innovators.

National Research Development Corporation (NRDC) under the Ministry of Science and Technology is engaged in licensing, transfer and commercialisation of technologies and innovations to enterprises in the country. Over the last six decades of its existence, the corporation has forged strong links with large number of R&D organisations/universities/industry associations and has filed 1700 patents and signed 4,874 license agreements for transfer of technologies in different sectors.

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decision on Marketing including Pricing freedom for the gas to be produced from Discoveries in High Pressure-High Temperature, Deepwater and Ultra Deepwater Areas

decision on Marketing including Pricing freedom for the gas to be produced from Discoveries in High Pressure-High Temperature, Deepwater and Ultra Deepwater Areas

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approveda proposal to grant marketing including pricing freedom for the gas produced from High Pressure High Temperature, Deepwater and Ultra Deepwater areas. The marketing freedom so granted would be capped by a ceiling price arrived at on the basis of landed price of alternative fuels.

The policy guidelines would be applicable to future discoveries as well as existing discoveries which are yet to commence commercial production as on 1.1.2016. However, in case of existing discoveries which are yet to commence commercial production as on 1.1.2016, if there is pending arbitration or litigation filed by the contractors directly pertaining to gas pricing covering such fields, this policy guideline shall be made applicable only on the conclusion/ withdrawal of such litigation/ arbitration and the attendant legal proceedings. All gas fields currently under production will continue to be governed by the pricing regime which is currently applicable to them.

The ceiling price in US $ per mmbtu (GCV) shall be the, lowest of the (i) Fuel oil import landed price (ii) Weighted average import landed price of substitute fuels (0.3 x price of coal + 0.4 x price of fuel oil + 0.3 x price of naphtha) and (iii) LNG import landed price, whichever is lower.

The landed price-based ceiling will be calculated once in six months and applied prospectively for the next six months. The price data used for calculation of ceiling price in US $ per mmbtu (GCV) shall be the trailing four quarters data with one quarter lag. Director General of Petroleum Planning and Analysis Cell (DG, PPAC) under the Ministry of Petroleum and Natural Gas will notify the periodic revision of gas price ceiling under these guidelines.

Production Enhancement: 

The decision is expected to improve the viability of some of the discoveries already made in such areas and also would lead to monetization of future discoveries as well. The reserves which are expected to get monetized are of the order of 6.75 tcf or 190 BCM or around 35 mmscmd considering a production profile of 15 years. The associated reserves are valued at 28.35 Billion USD (1,80,000 Crore) The country’s present gas production is around 90 mmscmd. Besides, these there are around 10 discoveries which have been notified and whose potential is yet to be established.

Employment Generation: 

The decision is expected to result into monetization of the 28 discoveries mentioned above which can result into substantial investment by the contractors.

There would be substantial employment generated during the development phase of these discoveries and a part of it would continue during the production.

ONGC has estimated that in the development of discoveries in the block KG-DWN-98/2, there would be deployment of 3850 direct skilled labours. Besides, these there would be around 20,000 persons required during the construction phase. GSPC presently in the block KG-OSN-2001/3 is deploying around 690 personnel in the block.

Transparency and Minimum Government and Maximum Governance:

Government will not interfere in the price fixation for every block covered under the policy.

Provision of ceiling to balance the requirements of consuming sectors

Incentivize upstream investment and not getting into unnecessary details. 

South Asia Regional Training and Technical Assistance Center in India by the International Monetary Fund

Memorandum of Understanding between India and International Monetary Fund for setting up of South Asia Regional Training and Technical Assistance Center in India by the International Monetary Fund

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for entering into the Memorandum of Understanding (MoU) between India and International Monetary Fund (IMF) for setting up of South Asia Regional Training and Technical Assistance Center (SARTTAC) in India by the IMF. It also authorised the Finance Minister to approve related decisions in respect of India’s contribution for setting up of the centre, including Letter of Understanding for financial contribution by India, site of the SARTTAC, representative of India on the Steering Committee on SARTTAC, etc.

The SARTTAC will be a collaborative venture between the IMF, the member countries that is Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka and development partners for supporting the capacity development needs of the members. Additional member countries could join SARTTAC at a later stage. SARTTAC will also selectively cater to the capacity building needs at the State level, especially in India.

The IMF is organising a Regional Conference on ‘Advancing Asia: Investing for the Future’ in New Delhi. The MoU may be entered into during this Conference.

The MoU will help in capacity building of Government officials including state level in macro, fiscal, monetary policies by the IMF and greater coordination between the six member countries of South Asia.

Capacity development at Central and State level in fiscal and financial policies will enhance revenue mobilization and development of policies aimed at more effective public and financial management. This will result in economic development and inclusive growth in the country.

Capacity development by the IMF will bring in the best practices from across the globe, as well as the South Asian region, resulting in innovative solutions to fiscal, monetary and financial issues and effective response through use of IT and innovative techniques.