If India moves towards high growth trajectory testing double-digit growth by next few years, energy demand and consumption will increase, says Minister of Petroleum and Natural Gas Dharmendra Pradhan.
Dharmendra Pradhan, Minister of Petroleum and Natural Gas, said the government is working towards reducing dependency on crude oil imports by 10 percent within next 5-6 years.
If India moves towards high growth trajectory testing double-digit growth by next few years, energy demand and consumption will increase, Petroleum Minister told CNBC-TV18.
Hence, the ministry will have to have a long-term energy security scheme through bilateral and geo-political network, while producing more oil and gas from existing and explored oil fields, he added.
The department is also looking to add on new verticles in energy basket like bio-energy and bio-fuels, he said.
Below is the transcript of Dharmendra Pradhan’s interview with Navin Shetty on CNBC-TV18.
Q: What will the strategy of the government be going ahead in 3-4 years of reduction in oil imports?
A: Honourable Prime Minister has given us a target, by next 5-6 years, when India will be completing 75 years of independence, we must reduce 10 percent of our domestic import dependency. That is the target in front of our sector, in front of our oil ministry. But, we all know the energy consumption is growing as a developing country. India is moving towards a high growth trajectory. There are assumptions, there are predictions, where in next few years India may touch double digit growth gross domestic product (GDP).
In that scenario, our consumption will be growing. We are conscious about the reduction of import of crude oil. Simultaneously, we are securing our long-term energy security through new bilateral discussions, new changing geo-politics of the world. And, in the new field, through policy reforms, in the existing field, the field discovered long ago, we want to augment our domestic production, we want to add on new verticals in energy basket like bio energy, bio fuels. Simultaneously, we are working in multi-dimensional level. We have to reduce our import dependency, we have to have long-term energy security through our bilateral, through our geo-political network and simultaneously, we have to produce more oil and gas from our existing field. We have discover, explore and discovery new fields, add on in our basket and simultaneously, new unconventional hydro-carbons, bio energy, all these things has to be add on to our great energy appetite which will be almost 100 percent growth, in the near-future.
Q: If you could just quantify on how much will be the amount that the country will be saving, maybe in the next three years?
A: I am not a media person, so I do not have any temptation to put it in as a timeframe. These all are infrastructure issues. We are working in the probability. Nobody knows what is there within the hour. What is the new geo-politics, the emerging geo-politics in near future. The hydrocarbon sector is full of uncertainty, but I am confident with the decisive leadership of Prime Minister Modi, as I said, we are very focused in domestic area, also in international arena. So, we have a road map, we have a very focused road map, what will happen in this financial year, what will be our strategy in the next financial year, what will be our strategy for the next few years. We are very clear, but I do not want to quantify, I do not want to bind myself in a year tag.
Q: Now that the prices have been increasing from a USD 27 per barrel, we are seeing around USD 50 per barrel, how comfortable are you, if I were to say the subsidy sharing agreement, will there be any changes, what will be the strategy going ahead on that?
A: Subsidy sharing agreement is over now. There is no subsidy sharing mechanism with exploration and production (E&P) companies.