Outcome Budget for 2015-16
Total Page:16
File Type:pdf, Size:1020Kb
OUTCOME BUDGET FOR 2015-16 CONTENTS Sl. Chapter Subject Pages No. No. No. 1 Executive Summary 1 2 I Introduction 5 3 II Statement of Budget Estimate· 17 Annexure II-A Non-Plan Outcome Budget for 2015-16· Annexure II-B Plan Outcome Budget for 2015-16 4 III Reform Measures and Policy Initiatives 112 5 IV Review of Past Performance 121 Statement – I Physical and Financial Progress of Projects Costing upto Rs.100 crore Statement – II Physical and Financial Progress of Projects Costing Rs.100 crore and above 6 V Financial Review 208 Statement I Non Plan Budget for 2013-14, 2014-15 (BE, RE & Actual Expenditure) and 2015-16 (BE) Statement II Part-A Annual Plan Outlay 2013-14, Actual Expenditure 2014-15 (BE, RE & Actual Expenditure) and 2015-16 (BE) for each programme/activities of PSUs. Statement II Part-B Budget Estimates for 2015-16 and Financing Pattern thereof Statement II Part-C Sector-wise Plan Outlays 7 VI Review of Performance of Statutory and Autonomous Bodies 263 8 Abbreviations 451 1 EXECUTIVE SUMMARY The Outcome Budget document for 2015-16 contains, in detail, the physical dimensions of financial outlays indicating the actual performance in 2013-14, performance in the first 9 months of 2014-15 and the targets for performance during 2015-16. It also dwells upon the mandate, goals & objectives, the policy framework for the sector as well as the various policy initiatives and reform measures taken by the Ministry. 2. The mandate vision goals and objectives and policy frame work of the Ministory of Petroleum and Natural Gas are aligned with this aim. 3. To implement the Vision statement, as envisaged in the document “Hydrocarbon Vision 2025”, activity-wise set of objectives have been spelt out along with the policy framework in place. Further, major programmes / schemes have been explained. 4. Chapter II deals with the Non-plan and Plan outlays and outcomes of MOPNG. The Non Plan Budget (2015-16) of Rs. 30075.55 crore of the Ministry comprises mainly of “Subsidy on LPG” and “Kerosene Subsidy”. DBTL for LPG, other subsidy payable including NE region for LPG, Project Management Expenditure on DBTL for LPG, DBTL for Kerosene. Other subsidy payable including NE region for Kerosene, Provision for Petroleum Regulatory Board and Society for Petroleum Laboratory. 5. The size of the Annual Plan 2015-16 of Oil PSUs is Rs. 75565.46 crore. This predominantly comprises the Internal and Extra Budgetary Resources (IEBR) of Oil PSUs for implementation of projects. Budgetary support has been provided for the Rajiv Gandhi Institute of Petroleum 1 Technology (RGIPT), at Jais in Uttar Pradesh for development of infrastructure in the campus and for the Indian Strategic Petroleum Reserves Limited (ISPRL) for filling the underground caverns for strategic storage of crude oil. A token provision has been made for setting of Petroleum University in Andhra Pradesh. The company and project wise details, in the prescribed format, in respect of Oil PSUs have been given in the chapter. 6. Chapter IV contains details of the capital expenditure under “Plan” for various projects under implementation by the Oil PSUs. There are nine Public Sector Undertakings in which government has equity shareholding. These are ONGC, OIL, GAIL, IOC, HPCL, BPCL, EIL, Biecco Lawrie and Balmer Lawrie Investments Ltd. Balmer Lawrie Investments Ltd is a holding company of Balmer Lawrie Ltd. The chapter contains statements containing details of physical and financial progress of various projects. These projects broadly relate to enhancement of pipeline network in the country by GAIL, setting up of infrastructure facilities by Oil India Ltd. (OIL), acquisition of exploration acreages abroad by OVL, establishment and augmentation of refineries, setting of bottling plants by OMCs etc. There are 115 major projects costing Rs. 100 crore or more. Completion of these projects will enhance production of crude oil and natural gas and increase pipeline network in the country. Out of these 115 projects, ONGC and OVL have 37 and 25 projects respectively, followed by IOCL (22), GAIL (08), HPCL (10), BPCL (04), OIL (03), CPCL (03), MRPL (02), and NRL (01). 7. Chapter V is on financial review of the programmes/ activities of MoPNG over the last two years. Unspent balance as at end of 2013-14 is Nil, where as unspent balance at end of 2014- 15 (April – December, 2014) amounted to Rs. 3.26 crore in respect of non-plan budget. No utilization certificate is overdue from grantee institutions as on 31.12.2014. No amount was released to States during the year 2014-15 (April – December, 2014) under the incentive scheme for Direct Transfer of Cash Subsidy on PDS Kerosene, as there was no demands from states. 2 8. Chapter VI reviews performance of statutory and autonomous bodies and Oil PSUs, engaged in various activities, such as, exploration and production of oil and gas, transportation of gas, refining and marketing of petroleum products, etc. Profit Before Tax (PBT) and Profit After Tax (PAT) earned by the Public Sector Undertakings in the Oil Sector during 2014-15 (April – December, 2014) were Rs. 31019.80 crore and Rs. 20207.52 crore respectively. The autonomous organizations are CHT, OISD, PCRA, OIDB, DGH, PNGRB and RGIPT. 9. Oil PSUs have taken up various Gender Budgeting initiatives as well as Corporate Social Responsibility projects in their operating and project areas. They have undertaken various developmental measures, such as, training and capacity building of its women employees as well as social and community development programmes benefiting women and weaker sections of the society. 3 4 CHAPTER – I INTRODUCTION 1.1 Mandate The mandate of this Ministry in terms of the Government of India (Allocation of Business) Rules, 1961 include the following: a) Exploration for, and exploitation of petroleum resources including natural gas and coal bed methane. b) Production, supply, distribution, marketing and pricing of petroleum products including natural gas, and also additives for petroleum and petroleum products. c) Planning, development and regulation of oilfield services. d) Administration of Acts, viz, The Oilfields (Regulation and Development) Act, 1948, the Oil and Natural Gas Commission (Transfer of Undertaking and Repeal) Act, 1993, the Petroleum Pipelines [(Acquisition of Right of User in Land) Act, 1962, the Esso (Acquisition of Undertakings in India) Act, 1974, the Oil Industry (Development) Act, 1974, the Burmah-Shell (Acquisition of Undertakings in India) Act, 1976, the Petroleum Act, 1934, the Balmer Lawrie Investments Limited and Balmer Lawrie and Company Limited, and the Rules made therein. e) Oil refineries, including Lube Plants. f) Blending and blending prescription for bio-fuels including laying down the standards for such blending; and g) Marketing, distribution and retailing of bio-fuels and its blended products. 5 1.2 Vision Statement The Hydrocarbon sector plays a vital role in the economic growth of the country. It is necessary to have a long term policy framework for the development of the hydrocarbon sector in order to meet the future needs of the country. The Hydrocarbon Vision-2025, prepared by this Ministry lays down the framework, which guides the policies relating to the hydrocarbon sector. The Vision Statement as envisaged in the Hydrocarbon Vision 2025 includes the following: a) To assure energy security by achieving self-reliance not only through increased indigenous production but also through acquisition of equity oil and gas abroad. b) To enhance the quality of life by progressively improving the product standards to ensure a cleaner and greener India. c) To develop the domestic hydrocarbon sector as a globally competitive industry which could be benchmarked against the best in the world through up gradation and capacity building in all facets of the industry. d) To strive towards a free market, promote healthy competition among players and improve the customer service. e) To ensure oil security for the country keeping in views the strategic and defence considerations. 1. 3 Goal & Objectives and Policy Framework To implement the Vision statement, an activity-wise set of objectives have been spelt out along with the policy framework in place & announced to enable achievement of these objectives. 1.3.1.1 Exploration and Production (E & P) India is heavily dependent on import for its oil and gas requirements. Our total import of crude oil and petroleum products in the year 2014-15 (April – December, 2014) amounted 6 to 156.929 million metric tonnes (MMT), which is worth about Rs. 640196 crore. The country also exported petroleum products amounting to 48.886 MMT, earning foreign exchange worth nearly Rs. 240648 crore in the corresponding period. The gap between demand and availability of crude oil and natural gas from indigenous sources is likely to increase over the years. For bridging this growing gap, a greater emphasis is required on exploration and production. 1.3.1.2 Objectives a) To undertake a complete appraisal of the Indian sedimentary basin area for tapping the hydrocarbon potential. b) To optimize production of crude oil and natural gas in the most efficient manner. c) To keep pace with the technological advancements and remain at the technological forefront in the global exploration and production industry. d) To achieve a near zero impact on environment. 1.3.1.3 Policy Framework to Achieve Exploration and Production Objectives a) Under New Exploration Licensing Policy (NELP). Government has so far awarded and signed Production Sharing Contract (PSC) for 254 exploration blocks in 9 rounds. With a view to accelerate further the pace of exploration, 54 exploration blocks have been identified for offering to E&P companies in the tenth round of NELP. b) The Oilfields (Regulation and Development) Act, 1948 and the Petroleum and Natural Gas Rules, 1959, made thereunder make provisions, inter alia, for the regulation of Petroleum Operations and grant of Licenses and Leases for exploration, development and production of Petroleum in India.