‘India faces formidable challenges on energy front’

April 28, 2012
Electra

Bhatinda, April 28: Stating that India faces “formidable” challenges on the energy front, Prime Minister Manmohan Singh on Saturday said spiralling international oil prices have put a strain on the country’s import bill and domestic prices need to be rationalised.

“With imports accounting for about 80 per cent of our crude supplies, the spiralling prices of crude in the international market have put a severe strain on our import bill,” he said formally opening a USD 4 billion refinery here.

State-owned oil companies haven’t raised diesel, domestic LPG and kerosene for almost a year despite cost of raw material rising by a quarter.

“We also need to rationalise prices and at the same time ensure that the poor and needy are shielded from the effects of such a rationalisation,” he said.

The government had in June 2010 freed petrol prices from its control but PSU oil companies haven’t been able to raise prices because of political pressure. Petrol price of Rs 65.64 a litre in Delhi is about Rs 9 short of its cost.

The government controls rates of diesel, domestic LPG and kerosene. Oil companies sell diesel at a discount of Rs 16.16 a litre, while they lose Rs 32.59 on sale of every litre of kerosene. A 14.2-kg domestic LPG cylinder costs Rs 570.50 less than its actual cost.

“In order to insulate the common man from the impact of rising oil prices, the Government shoulders a sizeable portion of the burden by pricing diesel, Kerosene and domestic LPG below their market prices,” he said.

Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum lost about Rs 138,800 crore in revenues on selling diesel, domestic LPG and kerosene below cost in 2011-12. This fiscal, the revenue loss is estimated at Rs 208,000 crore.

“The challenges we face on the energy front are formidable. We need adequate supplies of energy at affordable prices. Domestic sources of crude oil and gas are inadequate to meet the growing demands of our rapidly expanding economy,” Dr. Singh said.

The Prime Minister said the 9 million tonne a year Guru Gobind Singh Refinery was built at a total investment of Rs 20,000 crore and is an example of what the public and the private sectors can achieve in partnership with each other.

“Ever since the project was initiated in the year 2004, our government has been monitoring its progress regularly and I am happy that our long standing commitment to the people of Punjab has finally been fulfilled,” he said.

HMEL, a joint venture of steel czar Lakshmi N Mittal’s Mittal Energy Investments and Hindustan Petroleum Corp Ltd (HPCL), built the refinery in 42 months.

The refinery will produce fuel meeting Euro-III and IV standards and “reiterates our commitment to safeguarding our environment while pushing ahead with growth,” Dr. Singh said. “The products from this refinery will especially help in bridging the gap between demand and supply in the northern region of the country.”

Stating that the refinery sector in India has grown phenomenally, he said the nation has emerged as a refining hub with capacity increasing from 62 million tonne per annum in 1998 to 213 million tonne.

“We have sufficient refining capacity to enable us to export petroleum products,” the Prime Minister said.

Start-up of Bhatinda refinery will help boost India’s exports and may open fuel sales to Pakistan.

Pakistan allows imports of fuels including petrol and diesel from India, after removing non-tariff barriers on November 2. The distance between Bathinda and Lahore is about 100 miles.

Dr. Singh said, “We need to take steps to conserve our scarce energy resources. There is no room for inefficient and wasteful usage of fuel, be it petrol, diesel, kerosene or gas.”

He added, “We need to adopt better technology and consumers should be made aware of the benefits of fuel conservation.”

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 28,2020

May 28: Congress President Sonia Gandhi on Thursday asked the central government to unlock its coffers and help the needy affected by the coronavirus-induced lockdown.

In a video message posted as part of the Congress' 'Speak Up India' campaign, she lamented that even though the country is passing through a serious economic crisis with loss of livelihood due to the pandemic and the lockdown, the central government has not heard the cries of pain and trauma of people.

"We again urge the Centre to unlock its coffers and help the needy. Put direct cash of Rs 7,500 per month in the account of every family for the next six months and provide Rs 10,000 immediately; ensure safe and free travel of labourers back home, employment opportunity and rations; and also increase the number of work days under MNREGA to 200 days to facilitate jobs in villages," Gandhi said.

"Instead of loans, provide financial relief to small and medium industry so that crores of jobs are saved and the country progresses," she said in her video message on the party's social media handles.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 28,2020

Bhopal, May 28: A Bhopal-based high net worth individual hired a 180-seater A320 plane of a private carrier to ferry four family members to New Delhi, in a bid to avoid crowd at the airport and in flight amid the COVID-19 outbreak, officials said on Thursday.

The person, who is a liquor baron, chartered the aircraft to send to Delhi his daughter, her two children and their maid, who were stuck in Bhopal since the last two months due to the coronavirus-induced lockdown, sources said.

The plane arrived here from Delhi on Monday with crew only and flew back with just four passengers for whom it was specially hired, they said.

"The A320 180-seater plane arrived here on May 25 to carry four members of a family, probably due to the coronavirus scare. It was chartered by someone and there was no medical emergency, an airline official said, refusing to divulge any further details.

Bhopals Rajabhoj Airport Director Anil Vikram could not be contacted for comments.

According to aviation experts, the cost of hiring an Airbus-320 is about Rs 20 lakh.

Domestic commercial flight services resumed from Monday, after a nearly two-month break due to the coronavirus-enforced lockdown.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 4,2020

Mar 4: Twenty-one Italian tourists and three Indian tour operators have been sent to an ITBP quarantine facility in Delhi on Tuesday for suspected coronavirus exposure, official sources said.

Health Ministry sources said these foreigners, 13 women and eight men, were in the same group of which an Italian and his wife have tested positive in Rajasthan capital Jaipur.

“His (Italian in Jaipur) condition is stable,” a source said.

Three Indians, who were accompanying this Italian group as tour operators, have also been sent to the ITBP facility in Chhawla area of south-west Delhi, they said.

All these people, staying at a five-star hotel in south Delhi, have been put in “preventive isolation” at the ITBP camp and their samples will be taken on Wednesday, sources said.

The centre already has 112 people, 76 Indians and 36 foreigners, since February 27 after they were evacuated by an IAF plane from Wuhan in China, the epicentre of the coronavirus.

The first samples of these 112 people had tested negative when reports came in last week.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.