Working Groups for the Eleventh Five Year Plan (2007-2012)

Petroleum and Natural Gas Sector

Dated 20th April, 2006

It has been decided to constitute a Working Group on Petroleum and Natural Gas in the context of preparation of Eleventh Plan (2007-2012).  The Composition and Terms of Reference of the Group will be as follows:

A. Composition:

1 Secretary, Ministry of Petroleum and Natural Gas Chairman
  Representatives of the Ministries  
2 Adviser (Energy), Planning Commission Member
3 Representative of Ministry of Surface Transport Member
4 Representative of Department of Economic Affairs, Ministry of Finance Member
5 Representative of the Department of Industrial Policy and Promotion Member
6 Representative of Ministry of Powe Member
7 Representative of Department of Chemicals and Petro-Chemicals Member
8 Representative of Department of Fertilizers Member
9 Representative of Ministry of Environment and Forest Member
10 Representative of Department of Commerce Member
11 Joint Adviser (Petroleum), Planning Commission Member
12 Joint Secretary and Financial Adviser, Ministry of Petroleum and Natural Gas Member-Secretary
  PSUs  
13 Chairman and Managing Director, Oil and Natural Gas Corporation Ltd. Member
14 Chairman and Managing Director, Oil India Ltd. Member
15 Chairman and Managing Director, Indian Oil Corporation Ltd. Member
16 Chairman and Managing Director, Bharat Petroleum Corporation Ltd. Member
17 Chairman and Managing Director, Hindustan Petroleum Corporation Ltd. Member
18 Chairman and Managing Director, Gas Authority of India Ltd. Member
  Private Sector Representatives  
19 Representative(s) of CII, FICCI, ASSOCHAM and TERI -  one each Member
20 Representative of Reliance Industries Limited. Member

B. Terms of Reference

The terms of reference of the Working Group will be as under:

  1. To review the Integrated Energy Policy Report and to suggest measures to operationalise its recommendations during the Eleventh Plan Period. 
  2. To review the recommendations of Dr. C. Rangarajan’s Committee on Pricing and Taxation of Petroleum Products and to suggest measures to make them operational during the Eleventh Plan. 
  3. To review the recommendations of Dr. V. Krishnamurty’s report on Restructuring of Petroleum Sector and to suggest measures to make them operational during the Eleventh Plan. 
  4. To review the likely achievement during the Tenth Plan period in meeting the targets set for exploration, production of crude oil and natural gas, addition to refining capacity and investments.  An analysis of the reasons for shortfalls, if any, may be highlighted.
  5. To recommend an industry structure that would enhance number of players, promote competition, provide a consistent and transparent pricing regime and raise conversion, transportation,   and end use efficiency.
  6. To review the subsidy structure in the Petroleum and Natural Gas Sector and to suggest measures to make them transparent and targeted.
  7. To estimate demands, year-wise, of crude oil, natural gas and petroleum products for the period from 2007-08 to 2011-12 and from 2012-13 to 2016-17 and also for 2021-22, taking into account the likely developments in the related sectors.
  8. To suggest a programme for appraisal of the Indian Sedimentary basins to the extent of 60% by 2011-12 and 85% by 2016-17 in order to have coverage of 100% by 2025 to be in line with India Hydrocarbon Vision-2025.
  9. To suggest target for reserve accretion for Eleventh Plan period with a view to increasing the R/P ratio.
  10. To estimate year-wise targets of production for the period from 2007-08 to 2011-12 and 2016-17 for crude oil, natural gas and petroleum products.
  11. To estimate gaps between demand and supply of crude oil, natural gas and petroleum products for the said periods and to suggest measures to bridge these gaps.
  12. To estimate the import requirements of crude oil, natural gas/LNG, petroleum products for the said period and the feasibility and sustainability of imports thereof.
  13. To evolve policy measures for Demand Side Management and Conservation of Petroleum Products.
  14. To review the approved/under implementation refining capacity additions/ expansions and to suggest the refining capacity at the end of Eleventh and Twelveth Plans.
  15. To review the existing policy of Marketing and Distribution of Petroleum Products and Natural Gas and to suggest policy measures to accelerate competition.
  16. To review the Bio-fuels programme and to suggest measures for their development.
  17. To suggest measures for assuring oil security for the country.
  18. To review the Auto Fuel Policy and to suggest measures for achieving the prescribed environmental norms.
  19. To review the status of Gas Hydrates, CBM, Underground Coal Gasification and Hydrogen Energy and to suggest measures for their development.
  20. To review and suggest R and D programme for the Petroleum and Natural Gas Sector for the Eleventh Plan.
  21. To assess the investment requirements for the Eleventh Plan in the Petroleum and Natural Gas Sector.
  22. To assess the infra-structural support, viz. raw materials, transportation including port facilities, construction facilities etc. in the light of possible production capacities in other public/private sectors that would be required for implementation of the development plans.

2. In order to assist the Working Group in its task, separate Sub-Groups on specific aspects may be formed by the Working Group.   These sub-Groups will furnish their reports to the Working Group.

3. The Chairman of the Working Group may-co-opt other Experts as may be considered necessary.

4. The Working Group will submit its report to the Planning Commission latest by the 30th September, 2006.

5. Non-official members of the Working Group shall be entitled to payment of TA/DA from Planning Commission as per SR 190 (a).  Official members will be paid TA/DA by their respective Departments/Organizations as per the rules of entitlement applicable to them.

6. The name(s) of representative(s) of various organizations as per the above composition may be communicated to the Member-Secretary of the Working Group under intimation to Shri Surya P. Sethi, Adviser (Energy), Planning Commission.

7. Shri R.C. Mahajan, Joint Adviser (Petroleum), Planning Commission, Room No. 218, Yojana Bhavan, Tel No. 23096743, will be the Nodal Officer for this Working Group in