22 December 2016

Year end review-Department of Fertilizers

Highest ever urea production of 245 LMT occurred in the country during 2015-16
Year end review-Department of Fertilizers

Following are the achievements of Department of Fertilizers, Ministry of Chemicals and Fertilizers during the year:
Availability of Fertilizers
·         Highest ever urea production of 245 LMT occurred in the country during 2015-16 (period April, 2015 to March, 2016) - an increase of 20 LMT (approximately) in comparison to the previous year.
·         Even in the current year, during Kharif 2016 (April to September) the availability of urea was 159.10 LMT against the sales of 144.14 LMT.
·         Timely and adequate availability of fertilizers in every part of the country has been ensured through close monitoring and meticulous planning of imports.
Neem Urea Coated
Based on the CCEA decision, vide notification dated 25th May, 2015 Department of Fertilizers has made it mandatory for all the domestic producers of urea to produce 100% as Neem Coated Urea with an extra MRP of 5% (of Rs. 5360/- per MT) to be charged by the fertilizer manufacturing entities from farmers. Entire quantity of indigenously produced urea and imported urea is being neem coated w.e.f 1st September, 2015 respectively.  In order to determine the impact, Department of Agriculture, Cooperation & Farmers Welfare (DAC & FW) was entrusted to conduct a study.  DACFW has submitted an interim report prepared by Agricultural Department and Rural Transformation Centre (ADRTC).  The findings of said study are as under:
·         Improvement in soil health.
·         Reduction in costs with respect to plant protection chemicals
·         Reduction in pest and disease attack
·         An increase in yield of paddy to an extent of 5.79 per cent.
·         An increase in yield of sugancane to extent of 17.5 per cent.
·         An increase in yield of maize to the extent of 7.14 per cent.
·         An increase in yield of Soyabeen to the extent of 7.4 per cent.
·         An increase in yield Tur/Red Gram to the extent of 16.88 per cent.
·         Diversion of highly subsidized urea towards non-agricultural purposes negligible among farmers after the introduction of the mandatory policy of production and distribution of only neem coated urea.
New Urea Policy
Based on the CCEA decision, vide notification dated 25th May, 2015, the New Urea Policy-2015 (NUP-2015) has been notified by Department of Fertilizers, with the objectives of maximizing indigenous urea production; promoting energy efficiency in urea production; and rationalizing subsidy burden on the government.  It is expected to prepare the domestic urea sector to become globally competitive in terms of energy efficiency over a period of three years.  On the basis of actual energy consumption and pre-set norms, the units have been divided into three groups and revised energy consumption norms have been fixed for next three financial years and target energy norm have been fixed for 2018-19.  It will drive urea units to select better technology and different measure to reduce energy consumption.  NUP-2015 is effective from 1st June, 2015 to 31st March, 2019.  NUP-2015 has led to additional production of approximately 20 LMT from the existing plants and the total production of urea during the year 2015-16 was 244.5 LMT, i.e. the highest ever urea production in the country.
City Compost
·         The Government of India approved a policy on promotion of City Compost.  A notification conveying the approval of the Government has been issued by this Department on 10.2.2016 in which marketing development assistance of Rs. 1500/-MT has been provided for scaling up production and consumption of city compost.
·         For co-marketing of City Compost, the tagging of Cities with fertilizer marketing companies for the purpose of proper utilisation of city Compost produced in the cities has been completed as per the list provided by M/o Urban Development.
·         Compost producers vide O.M. dated 28.9.2016 issued by the Department of Fertilizers, have been allowed direct sale of city compost to farmers.
·         The required software for routing of MDA through FMS and mFMS (now iFMS) is operational.
·         A joint Committee of Joint Secretaries of Department of Fertilizers, Ministry of Urban Development, and Department of Agriculture have been set up for coordination.
·         The fertilizer Companies have adopted 190 villages for promoting the use of City Compost.
·         State level steering Committee has been constituted for promotion of City Compost.
·         During April, 2016 to November 2016, 63994 M.T of city Compost has been co-marketed.
NBS Scheme for P & K fertilizers
·         Under NBS 2015-16, the condition regarding submission of quality certificate from State Government for the claim of balance payment to the companies has been liberalised. If quality certificate from State Governments is not received within 180 days, it would be considered as deemed receipt of certificate and balance payment if subsidy would be released to the fertilizer companies.
·         Applicability of NBS rates on the closing of P&K fertilizers at the end of FY has been streamlined.
·         In order to push major policy reforms in the fertilizer sector, Department of Fertilizers, w.e.f 18.3.2016 has removed minimum capacity utilization criteria for the Single Super Phosphate (SSP) units to be eligible for the subsidy under the Nutrient Based Subsidy (NBS) Scheme.

Reduction in price of P & K Fertilizers
The NBS rates are fixed based on international prices of P & K fertilizers under the NBS Scheme.  During the year 2016-17, the Government has already reduced the NBS rates taking into consideration the falling international prices of P&K fertilizers. It is observed that international prices of these fertilizers has again fallen down but this time Government has decided not to reduce NBS rates and pass on the benefit of international prices to the farmers. Accordingly, the P&K fertilizer companies have reduced the MRP of MOP, DAP and NPK by Rs. 5000/MT, Rs. 2500/MT and Rs. 1000/MT respectively in the month of June 2016 since the reasonableness of MRP is checked by the Department.

DBT in Fertilizers
Direct benefit transfer in modified from is being implemented in fertilizer sector. Department of Fertilizers has chalked out a programme to implement the DBT Pilot Project of the country in the following 16 Districts in Fertilizers Sector:
                              i.        Bihar                    -           Kishanganj
                            ii.        West Bengal       -           Maldah          
                           iii.        Madhya Pradesh  -           Hoshangabad         
                           iv.        Haryana               -           Karnal           
                            v.        Haryana               -           Kurukshetra             
                           vi.        Andhra Pradesh   -           Krishna         
                          vii.        Andhra Pradesh  -           West Godavari         
                        viii.        Maharashtra       -           Nasik 
                           ix.        Himachal Pradesh   -           Una   
                            x.        Kerala                  -           Kunnur                     
                           xi.        Telangana           -           Rangareddy 
                          xii.        Karnataka            -           Tumkur
                        xiii.        Maharashtra       -           Raigarh
                        xiv.        West Bengal       -           South 24 Parganas (in plac of Murshidabad)
                          xv.        Rajasthan            -           Pali
                        xvi.        Gujarat                 -           Narmada (in place of chotta Udepur)
          To implement the DBT Pilot Project in above 16 Districts of the country, a meeting was called with the District Collectors and CMDs of leading Fertilizers companies on 07.09.2016 to chalk out a plan for installation of Standard Operating System (SoP) at retailers point and also sort out the issues pertaining to the implementation of the DBT project.  A presentation was also given to them on the sale on point of fertilizers at retailers shops. The fertilizers companies were requested PoS devises as per NIC specification in consultation with all stakeholders for implementation of the DBT in 16 Districts.  The fertilizer companies were also asked to prepare a plan for installation of PoS devices at all retailers of the country by 1st January, 2017.
      Department of Fertilizers has authorized PDIL to recruit personnel for the posts of Project Manager, Technology Consultant, IES & MIS consultant and 16 District Consultant on contract basis for DBT Pilot Project in Fertilizer Sector. Department has already issued orders to M/s. PDIL for appointment of 1 Project Manager, 1 Technology Consultant and 1 IES & MIS consultant 13 District Consultant.  M/s. PDIL has appointed 13 District Consultant, 3 District Consultant of Kunnur (Kerala), Tumkur (Karnataka), Raigarh (Maharastra), Raigarh (Maharastra) have not been appointed.
       Department proposed to use KYC for authentication and collecting demographic data during DBT pilot Project in the country.  Department has already made agreement with UIDAI to take services of authentication Service Agency (ASA) which are registered with UIDAI.  The agreement has also been made with CSC. All documents as desired by UIDAI have seen sent to them to get on board with UIDAI as KYC User Agency (KUA).  UIDAI has provided license key & AUA Pre-production/KUA Pre-Production access to Department of Fertilizers.
         It has also been decided that based on the success of pilot Project, DBT in entire country will be rolled out by March 2018 in Phase-wise manner.
Formation of Indian Council for Fertilizer and Nutrient Research (ICFNR)
             Indian Council for Fertilizer and Nutrient Research (ICFNR), an Institution exclusively devoted to promotion of research in fertilizer sector under the Department of Fertilizers, has been set up on 16.09.2016.  The ICFNR has a Governing Council under the chairmanship of Hon’ble Minister of Chemical & Fertilizers and an Executive Council under the chairmanship of Secretary (Fertilizers). The terms of reference of ICFNR are as under:-
                               i.        To undertake/promote research in the area of fertilizer manufacturing technology, use of raw material and innovation in fertilizer products through partnership ad collaboration with various research institutions, fertilizer industry and other stakeholders.
                              ii.        To examine and comprehensively deliberate R&D project proposals submitted by various R&D organizations/Academic institutions, for suitable recommendations for funding.
                            iii.        To play a supportive role for identifying and formulating long range technology plans and working out suitable mechanism for adoption of indigenous processes.
                            iv.        To identify and promote eco-friendly micro nutrients and pesticide coated slow release fertilizers and also to ensure reduction of Carbon Footprint of fertilizer sector and energy efficient operation.
                              v.        To undertake and promote research in bio fertilizer and its derivatives with appropriate coating or blending so as protect and increase soil fertility.
                            vi.        To undertake and promote research in organic fertilizer and its derivatives with suitable coating or blending so as to protect and increase the soil fertility.
                           vii.        To promote dissemination of information on latest developments in Fertilizer sector and also to support new ideas and changes for effecting improvements in fertilizer industry.
                          viii.        The centre will work in close collaboration with other research institutions/centres/institutes and will also decide and disseminate the research work already undertaken by them.
            ix.        To undertake all such activities which will promote the core idea of ICFNR.

North Eastern Institute of Ayurveda & Homoeopathy at Shillong

Shri Shripad Naik to formally inaugurate the North Eastern Institute of Ayurveda & Homoeopathy at Shillong tomorrow

NEIAH to provide health care to people of North-Eastern region and Sikkim under Ayurveda/Homoeopathy systems of medicine


Minister of State for AYUSH (Independent Charge) Shri Shripad Yesso Naik will formally inaugurate the North Eastern Institute of Ayurveda & Homoeopathy (NEIAH) at Shillong in Meghalaya tomorrow. NEIAH is an autonomous institute established by M/o AYUSH, Government of India.

The Institute is having College of Ayurveda and College of Homoeopathy with admission capacity of 50 students each along with a 100-beded Ayurvedic Hospital and a 50-beded Homoeopathy Hospital, Documentation-cum-R&D Centre and Pharmacy with Drug Testing Laboratory. The institute will be a unique institution which will be independent and collocated beside NEIGRIHMS with multi-speciality, where education and health care facilities through Ayurveda & Homoeopathy will be provided under one platform. Moreover, it is designed to facilitate the promotion of Ayurveda and Homoeopathy, the expansion of health care facilities, improvement in the doctor-population ratio and Research and Development on bio-resources in the North East.

The construction of Ayurveda College & Hospital, Homoeopathy College & Hospital and Library cum Administrative buildings under Phase I of NEIAH project has been completed. Phase II of the Project will include residential quarters, hostels for under graduate boys/ girls, Senior Residents etc.

New scheme for promotion of skill india


Cabinet approves creation of ‘Indian Enterprise Development Service (IEDS)’ in the Office of Development Commissioner (MSME) under the Ministry of Micro, Small and Medium Enterprises
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to the Cadre review and formation of a new service in the name of Índian Enterprise Development Service (IEDS)’ in the Office of Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises(MSME). The creation of the new cadre and change in structure will not only strengthen the organization but will also help to achieve the vision of “Startup India”, “Stand-up India” and “Make in India”.

The measure will enhance the capacity and efficiency of the organization and also help in achieving growth in MSME sector through a focussed and dedicated cadre of technical officers

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National Apprenticeship Promotion Scheme (NAPS)
Prime Minister Shri Narendra Modi launched National Apprenticeship Promotion Scheme (NAPS) during his recent visit to Kanpur. The scheme has an outlay of Rs 10000 crore and it involves incentivizing employers in sharing 25% of total cost of stipend paid to the apprentices. It is for the first time Govt. of India has come forward to incentivize the employers to participate pro-actively in apprenticeship training. On this occasion, cheques were distributed by Shri Narendra Modi for 25% share to five establishments like HAL Bangalore, BHEL Delhi, GSRTC, Gujarat, APSRTC, Andhra Pradesh and Tata Motors, Lucknow.
As a sequel to this recognition, it is expected that more and more establishments from MSMEs, Private SPSUs, CPSUs and Govt sector will come forward to engage apprentices and support Prime Minister’s vision of Skill India.

21 December 2016

‘Empowering the Grid to meet Future Challenges’- A Curtain Raiser

‘Empowering the Grid to meet Future Challenges’- A Curtain Raiser
Union Minister of State (ICfor Power, Coal, New & Renewable Energy and Mines, Shri Piyush Goyal, shall be presiding over an event, Empowering the Grid to meet Future Challenges in New Delhi on 21st December 2016The event would be organized by Power Grid Corporation of India Ltd. (PGCIL), under the auspices of Ministry of Power.

Government of India has set a vision of 24X7 Power for all’. To realize this vision, Ministry of Power, along with other central agencies, has put special focus on efficient utilization of conventional generation resources and development of 175 GW renewable capacity by 2022All Central & State Government agencies along with private sector organizations are geared up to develop electricity infrastructure in the country.

For optimum use of resources, a strong National Grid has been evolved and a number of high capacity power transmission corridors have been developed to facilitate seamless power transfer from surplus regions to deficit areas.

During the event, Shri Goyal would be releasing 3 reports viz., ‘Renewable Energy IntegrationTransmission, an Enabler and Green Energy Corridors II and Electricity Demand Pattern AnalysisThe first two reports, prepared by PGCIL, cover aspects of comprehensive transmission plan to integrate renewable energy sources into the National Grid and role of Transmission as an Enabler in growing Renewable Energy (REpenetration scenarioThe last report has been prepared by Power System Operation Corporation Limited (POSOCO).

The Renewable Energy IntegrationTransmission, an Enabler report covers the study of balancing and stability issues for 15& 30RE capacity penetration and the aspects of Balancing Reserve Analysis with Thermal Power Plants, both gas and supercritical coal, Reservoir type Hydro & Pumped Storage Plants and the Way forward.

The Green Energy Corridors-II’ (Part-Areport details about the identified capacity of Solar Parks and transmission infrastructure requirement in various states at Intra-State and Inter-state levelIt inter-alia covers the financing options available for rationalization of transmission tariff and the challenges to be addressed to facilitate smooth integration of solar power parks.

The Electricity Demand Pattern Analysis’ report covers the analysis of data archived by POSOCO since 2008 with insights towards diurnal, seasonal and yearly demand patterns, decomposition of demand data into seasonal trends at all levels National, regional and individual State levelThe Demand Pattern Analysis may be used by Central and state level planning agencies for Generation, transmission and distribution planning, Identification of areas/sectors with maximum growth and Behavioral pattern of the population residing in that stateregionIt can also be used as valuable input for research by the academia and the industry.

Shri Goyal would also be launching Coal Mitra’ – a Web portal for Flexibility in Utilization of Domestic Coal, during the event. The event is expected to be attended by State Energy Secretaries, Head of State Utilities, officials from International Financing Agencies, various CPSEs, private sector and other Statutory bodies along with Media and Analysts.

initiatives were undertaken by the Ministry of Petroleum & Natural Gas in last one year.

More than 1.22 crore new LPG connections released to BPL women under Pradhan Mantri Ujjwala Yojana
Increased emphasis on Bio-fuels
Hydrocarbon Exploration and Licensing Policy (HELP) announced for award of hydrocarbon acreages
134 e-Bids received for the 34 contract areas under the Discovered small fields
A large number of important policies, activities, decisions and initiatives were undertaken by the Ministry of Petroleum & Natural Gas in last one year. The achievements were in downstream, midstream as well as upstream sectors. The year was declared as the year and saw launch of a number of people-oriented initiatives.
1.                  Pradhan Mantri Ujjwala Yojana (PMUY)
Government has approved Rs. 8000 crore under the Pradhan Mantri Ujjwala Yojana (PMUY) for release of 5 crore deposit free new LPG connections to Women of BPL families over three years, i.e. FY 2016-17, 2017-18 and 2018-19. The scheme will provide an initial cost of Rs. 1600/- for providing LPG connection to poor households in the name of women of the household. The Prime Minister launched the scheme on 01.05.2016 at Balia, Uttar Pradesh.
LPG connection to BPL families is being provided to the BPL family access to clean cooking fuel. The provision of LPG as a cooking fuel helps in addressing health problems caused by use of traditional sources of cooking fuel such as fire wood, coal, cowdung, etc. This will in turn enhance productivity of woman, raise their quality of life by removing drudgery associated with collection of wood and ensure them against non-availability of cooking fuel, at times.
Under the scheme, the Government of India provides deposit free LPG connection of BPL families identified through the Socio-Economic Caste Census 2011 data, which includes security of one cylinder, pressure regulator, hose pipe, installation charges and DGCC Book. The consumer has to purchase ISI standard gas stove, which is optional. Further, Oil Marketing Companies are also financing purchase of LPG stove and 1st refill to BPL customers on instalment basis, if they so desire.
To ensure smooth supply chain of LPG cylinders to meet the demand, Government is in process of setting up of 10,000 new distributorships. Majority of these distributorships will come in rural areas to cater to unserved consumers.
As on 09.12.2016, Oil Marketing Companies (OMCs) have released 12288517 new LPG connections under Pradhan Mantri Ujjwala Yojana (PMUY).
2.                  Direct Benefit Transfer in PDS Kerosene Scheme (DBTK)

Jharkhand has become first State in the country to implement DBTK and others have been requested to join the Scheme. Under the Scheme, the Kerosene is being sold at non-subsidised price and subsidy, as admissible, is being transferred to consumers directly into his/her bank account. The States would be given cash incentive of 75% of subsidy savings during the first two years, 50% in the third year and 25% in the fourth year. In case the States voluntarily agree to undertake cuts in kerosene allocation, beyond the savings due to DBT, a similar incentive would be given to those States/UTs. The initiative of the Government is aimed at rationalizing subsidies based on approach to cut subsidy leakages, but not subsidies themselves. The scheme will also stop diversion of Kerosene.
State Government of Karnataka had volunteered to undertake cut in Kerosene allocation and the similar proposal has also been received from Government of Haryana and Government of Telangana.
Further, Government of Haryana has requested to make the State Kerosene free by 31.03.2017.

3.                  Kerosene Free Delhi and Chandigarh
            NCT of Delhi and UT of Chandigarh have been declared Kerosene Free cities effective 1st October, 2013 and 1st April, 2016 respectively and hence no PDS SKO allocation is made to them.
4.                  PAHAL: World’s largest Direct Benefit Transfer Scheme
PAHAL (Pratyaksh Hasthantarit Labh) is the world’s largest Direct Benefit Transfer Scheme. Through PAHAL, subsidy given to consumers is directly transferred to the registered account of the consumer without involving any intermediary.  More than 16.99 crore consumers are registered to avail subsidy as on 28.11.2016.  PAHAL Scheme has been acknowledged by the Guinness Book of World Records as the largest cash transfer programme (households). More than Rs. 38,276 crore of subsidy has been transferred to the LPG consumers through 204 crore transactions since inception of the Scheme.
An intensive exercise was carried out for identifying duplicate / fake / ghost / inactive domestic LPG connections and, as of 01/04/2015, 3.34 crore such connections were identified. As a result of implementation of DBTL (PAHAL) mechanism, it became possible to block these 3.34 crore LPG connections as the subsidy was transferred in the accounts of only those consumers who had registered under PAHAL and who have been cleared after de-duplication exercise. For the financial year 2014-15, for 3.34 crore consumers outside the PAHAL net, the estimated savings would be 3.34 crore x 12 cylinders x Rs.369.72 (average subsidy per cylinder for FY 2014-15) equal to Rs.14,818.4 crore. Following a similar principle, the savings estimated for FY 2015-16 is Rs.6,443 crore and total savings for both the years works out to Rs.21,261 crore.
5.                  Giveitup and Giveback
Till date, around 105 lakh households have voluntarily given up their LPG subsidy, Nearly 63 lakh new LPG connections have been released to BPL families in Financial Year 2015-16 linked to Giveback campaign utilizing CSR funds of OMCs.
6.                  Production of Crude oil and Natural Gas
            Crude oil production during the year 2015-16 is at 36.950 Million Metric Tonnes (MMT) as against production of 37.461 MMT in 2014-15, showing a decline of 1.36%. Production of natural gas during the year 2015-16 is at 32.249 Billion Cubic Meters (BCM) which is 4.18% lower than production of 33.657 BCM during 2014-15. Crude oil production was mainly affected due to various reasons, including inter alia, less than envisaged production, natural decline due to mature fields and reservoir issues in some of the fields, rise of water cut, restricted bowser movement due to Assam bandh and power supply failure. Natural Gas production was affected due to natural decline in some of the fields, underperformance of wells, closure of wells for maintenance activities, less off-take by potential consumers etc.
7.                  Refining Capacity and Production
There has been considerable increase in refining capacity in the country over the years. During 2015-16, there was capacity expansion by 15 Million Metric Tonnes Per Annum (MMTPA) with the commissioning of Paradip Refinery. With this increase, the refining capacity has now reached at 230.066 MMTPA. Refinery Crude throughput (Crude Oil Processed) during 2015-16 was 232.854 MMT.
8.                  Emphasis on Bio-fuels
Ethanol Blended Petrol Programme
The Government, through Oil Marketing Companies (OMCs), is implementing Ethanol Blended Petrol (EBP) Programme under which, OMCs sell ethanol blended petrol with percentage of ethanol upto 10%.  In order to improve the availability of ethanol, the Government on 10.12.2014, inter-alia, decided to fix the delivered price of ethanol in the range of Rs. 48.50 per litre to 49.50 per litre, depending upon the distance of distillery from the depot/installation of the OMCs.  Further, ethanol produced from other non-food feedstocks besides molasses, like cellulosic and lingo-cellulosic materials including petrochemical route, has also been allowed to be procured. Due to these efforts, for the sugar year 2014-15, a quantity of 67.42 crore litre has been procured, almost doubling the supply of ethanol as compared to previous sugar year.  For Sugar year 2015-16, Oil Marketing Companies have contracted 130 crore litres of ethanol till 26.7.2016.
Bio-diesel Programme
On 10th August, 2015, the Government has issued notification to allow the sale of Bio-diesel (B100) by private manufacturers to bulk consumers like Railways, State Transport Corporations and other bulk consumers. Also, retailing of bio-diesel blended diesel by Oil Marketing Companies has started on the same day.  As on 1.7.2016, 1.32 Cr Litre biodiesel (B100) has been procured by OMCs.
Second Generation Ethanol
In furtherance of the decision of the Government to allow procurement of ethanol produced from cellulosic and ligno-cellulosic feedstock, Numaligarh Refinery Limited (NRL) has completed the Detailed Feasibility Report (DFR)  for a project to set up a bio-refinery for production of 49 TMT of bio-ethanol per annum from bamboo, in collaboration with M/s Chempolis Oy, Finland, at a project cost of Rs. 950 crores. 

9.                  Auto Fuels
            Ministry of Petroleum & Natural Gas vide order dated 19.01.2015 has notified the implementation of BS-IV auto fuels in the entire country w.e.f 01.04.2017 in a phased manner. It has been decided that the country will leapfrog directly from BS-IV to BS-VI fuel standards and BS-VI standards will be implemented in the country w.e.f 01.04.2020.
10.              Gas pipeline in eastern India
The eastern India gas corridor i.e. Jagdishpur-Haldia pipeline (JHPL) project of 1847 Km is being implemented by GAIL. The design capacity of JHPL is 16 MMSCMD. JHPL project is considered for meeting the energy and feed stock needs of various industries (viz. Fertilizer Plants, Power Plants, City Gas Distribution etc.) en-route the Pipeline in Uttar Pradesh , Bihar, Jahrkhand and West Bengals. GAIL is implementing the JHPL in a phased manner at the total cost of about Rs. 13000 crore. Survey work for the entire project has been completed. GAIL has started work on execution of Phase-I of JHPLTrunk line of 341 Km from Phulpur (U.P.) to Gaya (Bihar) along with Spur-lines (414 Km) to Varanasi, Gorakhpur, Patna and Barauni at the cost of about Rs 4000 crore. GAIL has opened the pipeline construction office at Patna (Bihar). The activities related to acquisition of Right of User (RoU) for pipeline laying has been commenced. The construction work on pipeline sections of 236 Km in Bihar (Patna and Barauni) has been commenced on September 15, 2015. Further, GAIL has taken steps to procure Line pipe for mainline from Phulpur to Dobhi (316 Km) and work is in progress. Phase-I of JHPL project is expected to be completed by 2018-19 in synchronization of anchor gas customer and gas sources. The matter was considered in PIB meeting held on 6th July, 2016 and it was agreed to provide 40% monetary support of the capital cost to GAIL from Government Budget.

11.              Make in India
All Oil PSUs have formulated INDEG (Indigenisation Group) to increase the domestic component in all kinds of procurements. MoUs have been signed with research and academic institutions to develop indigenous technologies. The work on the feasibility for establishing a Petroleum Economic Zone is in an advanced stage. A concept note on use of OIDB funds for Make in India has been sent to Min. of Finance and Niti Aayog for comments. 

12.              Indian Strategic Storage Programme for storage of crude oil by Indian Strategic Petroleum Reserves Limited (ISPRL).

Ministry of Petroleum and Natural Gas, in pursuance to the decision of the Union Cabinet on 7th January, 2004, through Indian Strategic Petroleum Reserves Limited (ISPRL), has constructed Strategic Crude Oil Reserves with storage capacity of  5.33 Million Metric Tonnes (MMT) at three locations viz. Visakhapatnam (storage capacity: 1.33 MMT), Mangalore (storage capacity: 1.5 MMT) and Padur (storage capacity: 2.5 MMT) to enhance the energy security of the country.  The reserves are being created by the Government so that the crude oil will address the oil needs of the country, in the event of a national calamity, disruption of supplies, unforeseen global event leading to scarcity of supplies/abnormal spike in prices etc.  Indian Strategic Petroleum Reserves Limited is a Special Purpose Vehicle, which is a wholly owned subsidiary of Oil Industry Development Board (OIDB).  The crude oil storages are in underground rock caverns and are located on the east and west coasts so that they are readily accessible to the refining sector.
The capital cost of the three storages, namely, Visakhapatnam, Mangalore and Padur is Rs 4098.35 crore.
            As regards filling of crude oil in these caverns, the Cabinet Committee on Economic Affairs (CCEA), in its meeting held on 31st March, 2015  decided that the cost for filling crude oil in Visakhapatnam cavern will be met by the Government of India  against the 12th Plan outlay of Rs. 4948 crore under the GBS Scheme of Ministry of Petroleum & Natural Gas for the Indian Strategic Storage Programme for storage of crude oil by ISPRL and the  remaining amount would be used for filling up the strategic part of the caverns which are being constructed at Mangalore and Padur. Besides, Ministry of Petroleum and Natural Gas would continue to explore alternative models for filling part of the reserves in respect of Mangalore and Padur caverns including commercial utilization by other interested parties. 
            The Vishakhapatnam and Mangalore storage facilities have already been commissioned. The facility at Vishakhapatnam has already been filled up and nearly one fourth of Mangalore storage facility has also been filled. The storage facility at Padur has also been completed.
13.              Production and Consumption of Petroleum products
            The production of petroleum products is at 231.924 MMT in year 2015-16 as against 221.136 MMT achieved n 2014-15, showing an increase of 4.88%. During the year 2015-16, the consumption of petroleum products in India was 183.495 MMT with a growth of 10.86% as compared to consumption of 165.520 MMT during 2014-15.
14.              Import of Crude oil
            Import of crude oil during 2015-16 was 202.851 MMT valued at Rs. 4,16,361 crore which marked an increase of 7.08% in quantity terms and 39.43% decrease in value terms over import of 189.435 MMT valued at Rs. 6,87,416 crore during 2014-15. The decline in value terms is related to reduction in average crude oil price from 84.2 US$/bbl in 2014-15 to 46.17 US$/bbl in 2015-16.
15.              Import and Export of Petroleum Products
            During the year 2015-16 imports of petroleum products were 28.302 MMT valued at Rs. 65,803 crore which shows an increase of 32.87% in quantity terms and 11.84% decrease in value terms against imports of 21.301 MMT valued at Rs. 74,644 crore during 2014-15.
            During the year 2015-16, exports of petroleum products were 60.536 MMT valued at Rs. 1.76,733 crore which shows a decrease of 5.31% and 38.74% decrease in quantity and value terms against the exports of 63,932 MMT valued at Rs. 2,88,580 crore for the corresponding period of last year.

16.              Swachh Bharat Mission
            The Oil & Gas Central Public Sector Enterprises and its Joint Ventures (CPSEs/JVs) under the administrative control of Ministry of Petroleum & Natural Gas have under Swachh Bharat Abhiyaan, completed construction of 20,186 school toilets with a total cost of Rs. 355.85 crore, providing services to more than 5.5 lakh girl students. Also Oil Marketing Companies have provided clean toilets in 51,846 Retail Outlets (ROs). Out of these, 21,750 ROs are having separate facilities for men/women as on 30.06.2016. 
17.              Policy for Discovered Small Field
Cabinet on 02.09.2015 approved Discovered Small Field Policy for monetization of 69 hydrocarbon discoveries made by National Oil Companies ONGC and OIL which could not be monetized for many years due to various reasons such as isolated locations, small size of the reserves, high development costs, technological constraints, fiscal regime etc. Policy notifications were issued. In addition, notifications for royalty and exemption of cess and customs duty were issued.  MoP&NG decided to defer auctioning of two fields in Nagaland. The Ministry launched the bid on 15/07/2016. National and International Road Shows were held at various places. 134 e-Bids for the 34 contract areas under the Discovered Small Fields (DSF) Bid Round 2016 were received by the deadline of 1200 Hours on 21st November 2016. The bid round took place in a challenging global market environment when the oil & gas prices have been volatile and the investment in the exploration & production sector has seen substantial decline. Out of the total 134 e-bids received, 120 e-bids were received for onland areas and 14 e-bids were received for offshore areas. As many as 42 companies (Individually or as member of the bidding consortium) participated in the bid round.
18.              Hydrocarbon Exploration Licensing Policy (HELP)
Cabinet on 10.3.2016 has approved Hydrocarbon Exploration and Licensing Policy (HELP) for award of hydrocarbon acreages.  The salient features are (a) Single License for exploration and production of conventional as well as non-conventional hydrocarbon resources; (b) Open Acreage Policy-option to select the exploration blocks without waiting for formal bid round; (c) Revenue Sharing Model – simple, easy to administer – no cost recovery – no micromanagement by the Government – operational freedom to the operator; and (d) Pricing and Marketing Freedom – a major incentive for investment.
DGH has initiated the process of preparation of various documents such as Notice Inviting Offer and Model Revenue Sharing Contract etc. and to operationalise the Open Acreage Policy. On completion of preparatory work, launch of bidding round can take place.
19.              Appraisal of Sedimentary Basin
This is a crucial step towards increasing India’s Hydrocarbon Production.  Ministry has approved a project to appraise about 1.5 Million Sq. Km in 24 Indian sedimentary basins where no/scanty geo-scientific data is available. Under the project, 2D seismic surveys are to be conducted apart from drilling of parametric Wells. The acquired database will enable understanding of the geology and hydrocarbon prospectively of the areas for carving out and offering blocks for exploration.  About 48,243 Line KM of 2D seismic data shall be acquired in onland area along with 4 parametric wells at a cost of approximately Rs. 5100 crore through the ONGC and OIL India Ltd. under the supervision of DGH. The project duration will be for five years (2015-2020).
20.              Marketing including Pricing freedom from the gas to be produced from the discoveries in High Pressure-High Temperature
CCEA has approved a 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. This initiative is expected to incentivize gas production in the country.
21.              Skill Development Initiatives
Under the Skill Development  Initiative of the Government of India,  Oil & Gas PSUs under MoPNG are setting up 6 Skill Development Institutes (SDIs) in the country.
IOCL SDI at Bhuvaneshwar, Odisha was inaugurated by Hon’ble MoS (IC) PNG, Shri Dharmendra Pradhan on 09th May, 2016. Pending allotment of land for a full-fledged Institute, the SDI has been established by refurbishing four sheds leased to Oil India Limited by Odisha Industrial Development Corporation.
The first batch comprising 45 students each in Industrial Welding and Electrician was started on 30.06.2016. The students on successful completion of the 6 months course will be issued certificates aligned to National Skills Qualification Framework (NSQF) of the Government of India. For Industrial Welding the certification will be through the Mining Sector Skill Council and for Electrician through the Capital Goods Sector Council.
Nettur Technical Training Foundation (NTTF) has been engaged as Training Partner. NTTF is providing faculty support  and will also provide placement support.
The students are charged a subsidized fee of Rs. 5000 each, while IOCL will incur an expenditure of Rs. 1 lakh on each student. Free hostel accommodation (lodging & boarding facility) has been arranged in the rented premises in the vicinity of the Institute for the students.
22.              Start-Up
All Oil PSUs have been requested to prepare their Action Plan to  facilitate “Start-Ups” in oil and gas sector.
23.              Indian Institute of Petroleum and Energy (IIPE), Visakhapattnam

As per 13th Schedule of Andhra Pradesh Reorganisation Act, 2014, Indian Institute of Petroleum and Energy (IIPE) has been set up with the objective to meet the quantitative and qualitative gap in the supply of skilled manpower for the petroleum sector and to promote research activities needed for the growth of the sector.  The Government of Andhra Pradesh has made available an area measuring about 200 acres of land in Visakhapatnam District for the Institute which is free of cost.  IIPE Society has been registered on 18.04.2016. College of Engineering (Autonomous) situated in Andhra University at Visakhapatnam has provided the resources to start the IIPE sessions during the academic year 2016-17 in two B.Tech. Programmes, viz., Petroleum Engineering and Chemical Engineering.  Rank list from JEE-Advanced, 2016 (IIT-Guwahati) has been received and Rank holders have been invited to apply for admission to IIPE.  About 100 students have got admission in these two programmes.  IIT-Kharagpur has been roped in to act as a Mentor Institution for starting the academic session.

The capital expenditure for the project is estimated to be around Rs.655.46 crore (Rs.432.37 crore for the 1st Phase and Rs.223.09 crore for the 2nd Phase).  Deficit funding against recurring Expenses for 2016/17 to 2014/25 period would be Rs.334.84 crore.  The source of funding for the proposal would be through Gross Budgetary Support (GBS). Foundation stone of the Institute has been laid by Hon’ble MoS (IC), PNG on 20.10.2016.

24.              Rajiv Gandhi Institute of Petroleum Technology
Permanent Campus of RGIPT has been inaugurated at Jais, Amethi, Utter Pradesh by Minister of State (IC), Petroleum & Natural Gas on 22.10.2016 in presence of Minister of HRD and Minister of Textiles.

25.              Consumer –Centric  Initiatives
MoPNG has launched a number of consumers empowering initiating such as MyLPG.in providing online information to LPG consumers, rating of distributors based on delivery performance, SMS/IVR system to facilitate refill booking, E-SV (Sahaj) which is electronic subscription voucher released to consumer, LPG emergency help line No.1906, online payment facility for new connections and online portal to PNG customers for making bill payments.
26.              Acquisition of stake in Vankorneft oil block OVL /Indian Consortium
With the approval of CCEA in December 2015, ONGC Videsh Ltd acquired 15% stake in Vankorneft, a 100% subsidiary of Rosneft (Russia’s National Oil Company) at a cost of US $ 1268 million and completed all related formalities on 31 May 2016. The acquisition provides 4.53 MMTOE of hydrocarbon resources. OVL is presently negotiating acquisition of additional stake of 11% in Vankorneft and is expected to add 3.32 MMTOE of hydrocarbon resources.
            An Indian Consortium comprising Oil India Ltd (OIL), Indian Oil Corporation Ltd (IOCL) and Bharat Petro Resources Ltd (BPRL), a wholly owned subsidiary of Bharat Petroleum Corporation Ltd (BPCL), signed Share Sale Agreement (SSA) on 16 March 2016 in New Delhi for acquisition of 23.9% stake by the Consortium in Vankorneft from Rosneft. This acquisition is equivalent to 7.22 MMTOE of hydrocarbon resources. Presently, a draft ECS note is being process for obtaining requisite approvals. Once all acquisition formalities are completed i.r.o. 11% by OVL and 23.9% by the Indian Consortium, Indian public sector oil companies will have total 49.9% stake in Vankorneft and over 15.09 MMTOE of hydrocarbon resources will be added to India’s energy security. 

27.              Hydrocarbon Vision 2030 for North East India
In tune with the Government of India’s act east policy, the Ministry of Petroleum and natural Gas has prepared a hydrocarbon vision 2030 for the north east India which was released on 9th February, 2016 in Guwahati. The document has been prepared in consultation with all stakeholders including the state governments.
The Vision aims at doubling Oil & Gas production by 2030, making clean fuels accessible, fast tracking projects, generating employment opportunities and promoting cooperation with neighbouring countries.   These synchronized goals and action plans emanate from the Vision to develop North East Region as a dominant hydrocarbon hub at the forefront of India's energy economy and a step towards realizing our Prime Minister’s vision to develop the North East India in a mission mode. The Vision rests on five pillars: People, Policy, Partnership, Projects and Production. The document, not only envisages doubling the oil and gas production, but it also chalks out an action plan to double the availability of petroleum products such as petrol, diesel and LPG by the year 2030. It proposes for expansion of Guwahati, Bongaigaon and Numaligarh refineries, establishment of bio-refinery at Numaligarh and development of network of natural gas, POL and LPG pipelines in the state.
The Hydrocarbon Vision Document 2030 provides for an investment to the tune of Rs. 1.3 lakh Cr by the year 2030 in oil and gas sector in NE. Meanwhile we have already started implementing the action plan envisaged in the vision document. On 17th March the MOS(IC) PNG flagged off a rake containing NRL products for transporting to Bangladesh. NRL has done all the prep work for establishment of its bamboo refinery. For Siliguri-Parbatpur pipeline, NRL has entered into MOU with Bangladesh Petroleum and route survey and DFR has been completed. Guwahati Indmax has been commissioned in April 2016. For BGR Indmax project has been approved and will be completed by the year 2019.
Augmentation of Gopanari bottling plant has been completed. Additional LPG tankage at Silchar, Manipur and Nagaland has been completed. In order to address the serious LPG shortage issues, IOCL has planned for the LPG terminal at Chittagong and laying LPG pipeline to Agartala. IOCL has signed an MOU with M/S Premium LPG in May 2016.
28.        Petrotech 2016
PETROTECH-2016, the 12th International Oil & Gas Conference & Exhibition, organised under the aegis of the Ministry of Petroleum & Natural Gas, Government of India, was inaugurated by Hon'ble Prime Minister, Shri Narendra Modi, at Vigyan Bhawan on December 5, 2016. Shri Dharmendra Pradhan, Minister of State (Independent Charge), Ministry of Petroleum & Natural Gas, inaugurated the PETROTECH-2016 Exhibition at Pragati Maidan, New Delhi the previous evening on December 4, 2016.   As the prime showcase of India's hydrocarbon sector, the three-day mega event saw participation of over 100 eminent speakers and 6,000 delegates from 68 countries, including technologists, scientists, planners and policy-makers, management experts, entrepreneurs, service-providers and vendors. During the events, 11 MoUs relating to the sector were signed.

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