$60 billion investment coming in gas infrastructure: Pradhan Payment issues with oil PSUS will be resolved early: Air India
The government is giving special impetus to develop gas infrastructure across the length and breadth of the country
NEW DELHI: India is investing over $60 billion in developing natural supply and distribution infrastructure as it chases the target of more than doubling the share of natural gas in its energy base to 15 per cent by 2030, Oil Minister Dharmendra Pradhan said on Sunday.
Natural gas currently constitutes 6.2 per cent of all energy consumption in the country. Stating that the government has laid emphasis on developing a gas-based economy, he said natural gas is gradually becoming a bridging fuel for
low carbon economy in India. The government is giving special impetus to develop gas infrastructure across the
length and breadth of the country connecting north to south and east to west parts of India, he said.
"I am happy to inform you that as we speak, an estimated investment of 60 billion US dollars is underway in building gas pipeline and terminal infrastructure that are nearing or in advanced stages of completion," he said in his opening remarks at the third International Think Tank Meeting (ITT) here.
City gas distribution network will soon cover 70 per cent of India's population, he said. "Our government is exploring strategic partnerships for overall development of oil & gas sector. The role of private sector - both domestic and from abroad, for bringing in investments with necessary innovations for future energy
landscape in the country, will remain crucial".
CEOS of energy firms at the meeting stated that India will continue to increase consumption of fossil fuels in its energy mix, and there is an urgent need for an integrated energy policy cutting across all forms of energy.
Pradhan said energy is integral to achieving the target of early doubling the size of Indian economy to $5 tril
lion by 2024. Talking of key challenges confronting the energy sector, he said: "The foremost challenge of our time is the Energy Trilemma. It is about providing sustainably, securely, and affordably-sufficient energy to our growing population".
Secondly, in recent times, significant uncertainty and challenge were witnessed in the global energy markets. "We have seen the most disruptive developments. US sanctions on Iran and Venezuela, attacks on Saudi oil processing units, volatile conditions in Strait of Hormuz, unrest in the Middleeast, and Us-china trade war, to name a few," he said.
"These developments have an enormous impact on India's energy security and also on our economic, budgetary and investment dimensions," he said, adding India's import dependency on crude oil and LNG continues to rise unabated. Import dependence is now over 84 per cent for crude and 45 per cent for natural gas.
"Going forward, it is expected to increase further. Such excessive import dependency does make us vulnerable to external developments more than ever before," he said.
"The emerging era is going to be complex as each country will search for an optimal energy mix, without causing serious disruptions to their overall economic growth".
Indian companies have to develop a more strategic mindset by deploying latest technologies, ?Pradhan said, adding India will continue to depend on hydrocarbon and rely on clean and more efficient technologies, alongside robust producer-consumer relations as trade volumes grow.
"I am very clear that no single form of energy can meet the growing energy demand in India given India's development imperative that aims to ensure energy justice to all. Mixing all exploitable energy sources is the only feasible way forward in our context," he said.
"We need a balanced and realistic approach to develop a sustainable energy future". MUMBAI: State-owned Air India on Sunday said the aviation jet fuel payment issues are being sorted out and will be resolved soon with the oil PSUS, which have warned the carrier of snapping supplies at six key airports if it does not make monthly lump sum payment by October 18.
The airline also "assured" its customers of smooth operations, saying it has taken all the measures in the eventuality of the two sides failing to reach an understanding on the issue.
"The issues with oil companies are being sorted out and would be resolved early," Air India spokesperson Dhananay Kumar said in a statement.
In a letter sent to Air India last Thursday, the three government-owned oil marketing firms -- Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) -- said the outstanding had not come down considerably in the absence of the committed monthly lump sum payment. Late August, the three oil companies had stopped fuel supplies to Air India at six airports of Kochi, Mohali, Pune, Patna, Ranchi and Vizag over payment defaults and it was restored after 1 day following the intervention of the aviation ministry and a commitment from the airline to pay Rs 100 crore per month besides the same day payment for the daily uplift of the fuel.
At that time, the oil companies had claimed an outstanding amount of Rs 5,000 crore towards the national carrier.
"Meanwhile, Air India has taken all measures to ensure that flights are not disrupted and passengers are not inconvenienced at all. There is no reason whatsoever for any concern by esteemed Air India passengers," the spokesperson added in the statement.
On October 5, the oil companies had told Air India that if it did not make the monthly lump sum payment, they will stop fuel supply from October 11 at six major domestic airports.
However, Air India on Thursday requested the OMCS to not stop the supplies but did not give any timeline for clearing of the dues.
Following which, the oil PSUS deferred their decision to suspend supplies at six major airports to October 18.