2. Historical Perspective
• Indian petroleum industry dates back to 1890
• India's first refinery was built at Digboi in 1901
• Bombay High was between 1964-67
• In 1976, India nationalized the refining and marketing
sector in response to the oil crisis of the 1970s
• The oil exploration sector remained under state control till 1991
• The most significant step towards liberalization in the
oil industry-November 1997
3. CURRENT STATE & KEY
DEVELOPMENTS
• Accounts for 15% of the country’s GDP
• 10% of total in 2011 estimated 20% till 2025
• 2010 approx. 63% middle east,22% Africa ,
10% western hemisphere
• Policies-100 per cent FDI in many segments
• In 2011-Biggest Deal in oil and gas sector
• 2010 approx. 63% middle east,22% Africa ,
10% western hemisphere
• Policies-100 per cent FDI in many segments
• In 2011-Biggest Deal in oil and gas sector
4.
5.
6. Major contributory factors for high
demand growth rates in India
• Significant growth in passenger car population
• Significant growth in transportation vehicles
• Replacement of conventional cooking fuels
7. WAY FORWARD – AN ANALYSIS OF THE
2012–13 UNION
BUDGET, AND OTHER INITIATIVES
The duty on crude oil Increased From rs2500 to rs4500
The basic customs duty on the import of LNG for power
generation is exempted for two years
Subsidies on sensitive petroleum products such
as kerosene, LPG and diesel
Indirect initiatives-an increase in service tax from
10 per cent to 12 per cent
8. Way forward and key
opportunities
• Prospective investment of Rs 3.9 trillion
(US$ 75 billion) over 2012–17
• ONGC and IOC are expected to spend Rs 1.75
trillion
• 12th Five Year Plan emphasized-exploring off shore
oil fields
• The focus on R&D is expected to increase during
the 12th Plan period