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Modi issues target to oil companies

By R Dutta Choudhury

GUWAHATI, Aug 6 - The Prime Minister has given a target to the oil companies to reduce imports by 10 per cent by the year 2021-22 to bring down the country�s dependence on import of crude oil, said the Chairman and Managing Director (CMD) of Oil India Limited (OIL), Utpal Bora.

Talking to The Assam Tribune, Bora also said that there is no immediate plan by the Government for disinvestment of OIL as reported in a section of the media. The OIL CMD said that at present, India is the third largest consumer of energy in the world and the demand for energy is growing every year with the growth of the country�s economy.

He revealed that now India has to import more than 80 per cent of its crude requirement, which puts heavy burden on the country�s economy. That is why, the Government is concentrating on increasing domestic production to reduce dependence on imports. That is the reason why the Government changed the policy of allotment of exploration blocks from NELP to OALP and during the three rounds of bidding process, the OIL received allocation of 21 blocks.

Moreover, the Government does not have control over the oil prices as the country depends heavily on imports. No one can predict the prices of crude in the international market as it depends on various factors. In the last couple of years, the oil price in the international market has remained more or less steady, but the situation can change at any moment, he pointed out.

The situation with natural gas is much better as India has to import around 40 per cent of its requirement.

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Modi issues target to oil companies

GUWAHATI, Aug 6 - The Prime Minister has given a target to the oil companies to reduce imports by 10 per cent by the year 2021-22 to bring down the country�s dependence on import of crude oil, said the Chairman and Managing Director (CMD) of Oil India Limited (OIL), Utpal Bora.

Talking to The Assam Tribune, Bora also said that there is no immediate plan by the Government for disinvestment of OIL as reported in a section of the media. The OIL CMD said that at present, India is the third largest consumer of energy in the world and the demand for energy is growing every year with the growth of the country�s economy.

He revealed that now India has to import more than 80 per cent of its crude requirement, which puts heavy burden on the country�s economy. That is why, the Government is concentrating on increasing domestic production to reduce dependence on imports. That is the reason why the Government changed the policy of allotment of exploration blocks from NELP to OALP and during the three rounds of bidding process, the OIL received allocation of 21 blocks.

Moreover, the Government does not have control over the oil prices as the country depends heavily on imports. No one can predict the prices of crude in the international market as it depends on various factors. In the last couple of years, the oil price in the international market has remained more or less steady, but the situation can change at any moment, he pointed out.

The situation with natural gas is much better as India has to import around 40 per cent of its requirement.