Page 43 - Policy Economic Report - December 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The management of fall armyworm and aflatoxin was integral part in such programmes conducted under
this project along with mechanization and best weed and nutrient management. A total of 788
demonstrations of improved package of practices were conducted during Kharif 2024 in 15 clusters across
15 States. In Rabi 2024-25, the inputs were distributed to conduct demonstrations of improved practices
on 720 acres in the catchment area of ethanol industries. Specialized training for the distillers and seed
production organization were also conducted.

The Government has introduced the Oilfields (Regulation and Development) Amendment Bill, 2024, with
the aim of increasing domestic production of oil and gas and thereby reducing the country’s import
dependence. The bill targets various objectives, including attracting investments in the Exploration and
Production sector to bring in necessary capital and technology for expediting petroleum operations in the
country. It seeks to create an investor-friendly environment that promotes ease of doing business, fosters
prospects for exploration, development, and production of all types of hydrocarbons, ensures stability,
and provides adequate opportunities for risk mitigation.

The initiatives taken by the Government have resulted in a significant reduction in the "No-Go" area,
located off the coast of India in the Bay of Bengal, the Indian Ocean, and the Arabian Sea, from 1,366,708
square kilometers (SKM) to 24,832 SKM, thereby opening up approximately 99% of the previously
restricted areas for exploration activities. The enactment of the proposed legislation is expected to unlock
valuable mineral oil resources, attract investments, facilitate the development and production of all types
of hydrocarbons, and enable exploration of various unapprised and unexplored oilfields in the country,
including blocks in the previously designated "No-Go" areas.

The Government had notified the “Pradhan Mantri JI-VAN (Jaiv Indhan – Vatavaran Anukool Fasal
Awashesh Nivaran) Yojana” in 2019, amended in 2024, to provide financial support for integrated bio-
ethanol projects aimed at setting up advanced biofuel projects in the country using lignocellulosic biomass
and other renewable feedstock. Under this scheme, financial assistance of more than ?908 crore has been
approved for Public and Private Sector Oil Marketing Companies (OMCs) for six commercial-scale Second
Generation (2G) bio-ethanol projects and four demonstration-scale 2G ethanol projects. Among these,
the commercial project in Panipat, Haryana, has been dedicated to the Nation, while three other
commercial-scale projects are in advanced stages of construction.

Over the last 10 years, ethanol blending in petrol by Public Sector OMCs has helped reduce approximately
557 lakh metric tonnes of CO2 emissions.

Initiatives to Harness Hydro Potential

The Government of India has taken various initiatives to harness the hydro-power potential including the
hydro pumped storage potential viz: -

1. Declaring large hydropower projects (capacity above 25 MW) as renewable energy source.
2. Hydro Renewable Energy Consumption Obligation by Designated Consumers.
3. Tariff rationalization measures for bringing down hydropower tariff.
4. Budgetary support for Flood Moderation/Storage hydroelectric projects.

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