India to spend Rs 7.5 trillion on oil and gas infra in next 5 yrs: PM Modi

Noting that India imports over 85% and 53% of its oil and gas requirements, respectively, the PM says the country is working to meet growing energy demand and prune imports

The Government of India is planning to spend around Rs 7.5 trillion to build oil and gas infrastructure over the next five years, said Prime Minister Narendra Modi.

After dedicating the Ramanathapuram–Thoothukudi natural gas pipeline and Gasoline desulfurisation unit at Chennai Petroleum Corporation Ltd and laying the foundation stone for the Rs 31,500 crore Cauvery basin Refinery at Nagapattinam, the Prime Minister said that in 2019-20, India imported over 85 per cent of oil and 53 per cent of gas to meet its domestic demands. "Can a diverse and talented nation like ours be so energy-dependent," he asked. 

"It is our collective duty to work towards clean and green sources of energy and reduce energy-dependence," said the Prime Minister, adding that his Government is sensitive to the concerns of the middle class and thus, India is increasing focus on clean and green sources and ethanol to help farmers and consumers. 

He added, India is working to meet its growing energy demand and is also reducing dependence on energy imports.

"We are planning to spend around Rs 7.5 lakh crore (Es 7.5 trillion) in creating oil and gas infrastructure over five years," said the Prime Minister.

Today, Indian oil and gas companies are present in 27 countries with investment worth about Rs 2.7 trillion. About 65.2 million tonnes of petroleum products have been exported. This number is expected to rise even further. "Our companies have ventured overseas in acquisition of quality oil and gas assets," he said.

Strong emphasis has been laid on the expansion of city gas distribution networks by covering 470 districts, the PM said, adding that the government is aiming to increase the share of gas in the energy basket from 6.3 per cent currently to 15 per cent. He said the share of energy from renewable sources will be raised to 40 per cent by 2030. 

Commenting on the projects that were inagurated today, the Prime Minister said they are important and relate to Aatmanirbharta in the energy sector.

CPCL's new Rs 31,500 crore refinery anticipates about 80 per cent indigenous sourcing of material and services. The refinery will boost development of transport facilities downstream, petrochemical industries, ancillary and small scale industries in the region.

The grassroot refinery with nine million tonnes per annum (MMTPA) capacity is to be set up at Nagapattinam by a JV between IndianOil and CPCL. This project will generate some 5 million man-days during the execution phase. The new refinery will produce MS and Diesel meeting BS-VI norms and Polypropylene as a value-added product. These projects would bring substantial socio-economic gains and will aid the development of transport and communication facilities, education facilities, downstream petrochemical industries, ancillary and small-scale industries. 

The Ramanathapuram-Thoothukudi section (143 km) of the Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin Natural Gas pipeline (ETBPNMTPL) has been laid at a cost of Rs 700 crore. It has generated 170,000 man-days of employment. The pipeline will use the gas from ONGC fields and deliver indigenous natural gas as feedstock to Southern Petrochemical Industries Corp Ltd (SPIC) at Tuticorin and other industrial/commercial customers and CGD GAs.

The pipeline will bring down the cost of production of fertilisers. It is part of a larger natural gas pipeline project being developed at a cost of Rs 4,500 crore. "It will benefit several areas in South India", the PM said.

The Gasoline Desulfurisation unit at CPCL, Manali has been constructed for about Rs 500 crore, generating 18,000 man-days of employment. The unit will produce low sulphur (less than 8 ppm) environment-friendly gasoline, which will reduce emission and contribute towards a cleaner environment.