By TIOL News Service

NEW DELHI, OCT 14, 2019: THE Minister of Petroleum and Natural Gas & Steel Mr Dharmendra Pradhan has called for inclusion of petroleum products under GST regime. Speaking at third India Energy Forum by CERA Week here today, he appealed to the Union Finance Minister to take this up in the GST council and at least make a beginning by including natural gas and ATF in the GST. He stated that it had been two years since the introduction of historic tax reform the GST was implemented by decisive leadership of Prime Minister Modi. Given the complexity of petroleum sector and the revenue dependence of state governments in this sector, petroleum products have been kept outside the ambit of GST regime. There has been continuous demand from the petroleum industry for inclusion of petroleum products under GST regime, he mentioned.

Mr Pradhan also stated that no single form of energy can meet the growing energy demand in India given India's development imperative that aims to ensure energy justice to all. Mixing all commercially viable energy sources is the only feasible way forward in our context. India would chart its own course of energy transition in a responsible manner. He highlighted several measures taken by the Government to overhaul the hydrocarbon policy framework to revitalize oil and gas ecosystem and establish a conducive business environment. Growing presence of global oil and gas majors like Saudi Aramco, ADNOC, BP, Shell, Total, Rosneft and ExxonMobil in India is a testimony to the faith and confidence of global investors on promising India's growth story.

Mr Pradhan mentioned that three bid rounds under Open Acreage Licensing Policy and two rounds of bidding under the Discovered Small Fields (DSF) policy. Through these successful biddings, India is expected to garner an estimated investment of 58 billion US dollars in E & P sector by 2023. He said that Special thrust is being given to promote gas based economy under the guidance of Prime Minister Modi. He also mentioned that an estimated investment of USD 60 billion is lined up in building gas pipelines, terminals, and City Gas infrastructure that are in different stages of implementation. The City Gas Distribution network development in India which has been authorized for building and commissioning would cover half of India's geography and would serve 70% of India's population through availability of low carbon and affordable natural gas.

The Minister expressed the Government's commitment to make India a low carbon economy, though our per capita carbon emission is far less than the world average particularly the OECD countries. Regarding the downstream sector, he said that it has been completely liberalized. Market driven pricing of major petroleum products reflects the changes in line with the international price of crude oil. Our fuel standards are comparable to the best in world and pan India BS-VI complaint fuel would be available in India from April 01, 2020, Mr Pradhan said.

To promote the energy sustainability, the Minister said that we are giving thrust on biofuels. The new National Biofuel policy envisages an integrated approach to produce biofuels from various types of agriculture residue and municipal solid waste. Biofuel policy would help farmers to become "urja data from anndata".An important initiative has been undertaken to produce compressed biogas from biomass waste. We have made a target to setup 5000 compressed biogas plants in different parts of the country. These plants are being setup by private entrepreneurs. Oil marketing companies are offering assured price and offtake guarantee to procure the compressed biogas. Highlighting some difficulties being faced by these private entrepreneurs to access to bank finance for setting up CBG plants, he requested Finance Minister to look into this challenge. The Minister said that We also aim to achieve 10% blending percentage of ethanol in petrol by 2022 to cut dependence on energy import, promote the use of environment-friendly fuel and boost the agriculture sector.We are accelerating conversion of Used Cooking Oil (UCO) to biodiesel across 100 cities in India.

Inaugurating the Conference, the finance Minister Ms Nirmala Sitharaman stated that India is becoming an attractive destination for foreign investors. Highlighting the recent announcements to bring down the Corporate Tax rates, she said that atmosphere to invest is friendlier now. She also talked about the amendments in the Companies act and IBC Code, stating that the focus is now on compliance. Sitharaman assured that Energy sector is on top of agenda, and we are in the cusp of energy transition. The finance Minister said that the Government would ensure that the commitments made to the investors are honored. Reiterating the Government's commitment to COP-21 targets, she said that renewable energy sources are being encouraged. She said that India wants to widen its basket of energy sources. Lauding the Government's initiatives to provide cooking gas fuel and electricity to all the people of the country, she said that the Government had taken up these initiatives on mission mode, benefitting a large population.

The theme of third India Energy Forum by CERA Week Conference is ‘New India's Energy @75: Balancing Energy Security and Sustainability'. 1200 delegates from 15 countries and 300 companies are participating in the 3-day conference.