Page 61 - Policy Economic Report_Mar'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

will increase to 16% by end-2024.” Highlighting the need to streamlining operational and regulatory
processes, Shri Puri stressed that “The government is doing its part to catalyse investments in E&P. The
Ministry of Petroleum and Natural Gas (MoP&NG) has instituted sweeping reforms, empowering
stakeholders to contribute to our nation's progress, ” he added. He said that we intend to increase
India's exploration acreage to 1 million sq. km. by 2030.

June 2024
Cabinet approved Viability Gap Funding (VGF) scheme for implementation of Offshore Wind Energy
Projects

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the Viability Gap Funding
(VGF) scheme for offshore wind energy projects at a total outlay of Rs.7453 crore, including an outlay of
Rs.6853 crore for installation and commissioning of 1 GW of offshore wind energy projects (500 MW
each off the coast of Gujarat and Tamil Nadu), and grant of Rs.600 crore for upgradation of two ports to
meet logistics requirements for offshore wind energy projects. The VGF scheme is a major step towards
implementation of the National Offshore Wind Energy Policy notified in 2015 with an aim to exploit the
vast offshore wind energy potential that exists within the exclusive economic zone of India. The VGF
support from the Government will reduce the cost of power from offshore wind projects and make
them viable for purchase by DISCOMs. While the projects will be established by private developers
selected though a transparent bidding process, the power excavation infrastructure, including the
offshore substations, will be constructed by Power Grid Corporation of India Ltd (PGCIL). Ministry of
New and Renewable Energy, as the nodal ministry, will coordinate with various Ministries/Departments
to ensure successful implementation of the scheme.

May 2024
Government of India offered two discovered oil and gas fields in special bidding round

The government offered two discovered oil and gas fields in Mumbai offshore and a coal bed methane
field in West Bengal for bidding in the latest Discovered Small Fields (DSF) bid round. "With the objective
to augment domestic production of Petroleum and Natural Gas, the Ministry of Petroleum & Natural
Gas, Government of India announced the Special DSF Bid Round offering two (02) Discovered Small Field
located in Mumbai Offshore (MB/OSDSF/C37/2024 & MB/OSDSF/B15/2024) and one (01) Discovered
Coal Bed Methane field located in West Bengal (SR-ONCBM (Raniganj)-2024) through International
Competitive Bidding (ICB)," it said. DSF was launched in 2016 and since then three rounds have been
held. In the first round, 67 discovered oil and gas fields that were clubbed into 46 contract areas were
awarded. These fields had an inplace resource potential of 45 million tonnes of oil and oil equivalent
gas.

April 2024
Govt. decreased windfall tax on crude petroleum to Rs. 8,400/tonne

The government decreased windfall tax on crude oil to Rs. 8,400 per tonne effective May 1, 2024, from
the previous rate of Rs. 9,600 per tonne. However, the Special Additional Excise Duty (SAED) on export
of diesel, petrol and jet fuel or ATF has been retained at nil. India initially introduced the windfall tax in

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