Oil companies reach out to entrepreneurs for sustainable fuel
With a vision to reduce the oil import dependency of India, oil marketing companies (OMCs) invited expressions of interest (EoIs) from various gas manufacturers and potential entrepreneurs at a roadshow in Vashi on Monday. The EoIs were invited under Sustainable Alternative Towards Affordable Transportation (SATAT), a scheme launched by the Ministry of Petroleum and Natural Gas on October 1, 2018, to promote the use of biofuels such as Compressed Bio Gas (CBG). SATAT aims at marketing of CBG from 5,000 plants by March 2023-24 and estimated production of 15 MMT per annum. EoIs were invited from entrepreneurs willing to set up CBG plants and offer them to the OMCs for marketing through their retail outlets. Oil and gas marketing companies Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, GAIL (India) Limited and Indraprastha Gas Limited invited the EoIs. Under this initiative, OMCs, GAIL and IGL are offering remunerative prices for procurement of CBG with a long-term commercial agreement for entrepreneurs, said Milind Patke, ED, BPCL (Biofuels). “We are assuring entrepreneurs that we will purchase CBG for the next 10 years. We are expecting that petrol pumps would be able to purchase CBG at ₹46 plus GST. The biggest advantage of CBG is that it benefits the environment and the waste is being utilized gainfully. While CNG has more than 85% methane content, CBG will have more than 90%,” Mr. Patke said. OMCs have been conducting the ‘Road Show’ across the country in various States. CBG, he explained, is purified and compressed biogas, which is produced through a process of anaerobic decomposition from various waste and biomass sources like agriculture residue, cattle dung, sugarcane press mud and the waste from distilleries, sewage water, municipal solid waste, besides biodegradable fractions of industrial waste. CBG has properties similar to CNG and can be used as green fuel in automotive, industrial and commercial sectors along with CNG. Vijay Sharma, Director, of Ministry of Petroleum and Natural Gas, who was the chief guest at the event, said, “introducing CBG in the transport sector has multiple benefits such as waste management, reduction in carbon emissions, and additional revenue source for farmers by creating waste to wealth, and giving a boost to entrepreneurship and the rural economy by way of generating employment opportunities.” Mr. Sharma said promoting CBG in the transport sector would strengthen the Indian economy against the shocks of fluctuating crude oil and gas prices. If the total potential of CBG is exploited in the country, India can produce an equivalent of approximately 62 MMT of CBG annually, which is sufficient to replace the entire gas demand of the nation and make farmers go from being annadata (grain providers) to urjadata (energy providers) and contribute to a brown revolution for energy, said Mr. Sharma. Various technology providers present at the event showcased their CBG production technologies and entrepreneurs wanting to start new plants for production connected with them. A spokesperson for Ciro, said, “We currently manufacture LED lights but are planning to venture into producing CBG as well.”
Govt may eye Rs 1.5 lakh crore divestment in FY21; BPCL, Concor sale likely in H1: Sources
The government may come up with the highest-ever divestment target of Rs 1.5 lakh crore in the Budget come February, ET Now reported quoting sources. Sources told ET Now that the government may draw up a list of PSUs where stakes will be reduced below 51 per cent next year. The closure of NEEPCP and THDC sale to NTPC is likely before FY20-end. Another tranche of PSU ETF is likely before the end of this financial year. DIPAM is pushing for corporatisation of LIC and The Airports Authority of India (AAI) to help list the companies. It is eyeing about Rs 90,000 crore from the completion of BPCL and Concor stake sale in the first half of FY21, sources said. Analysts are anyway keeping low expectations from the Rs 1.05 lakh crore disinvestment target for FY20 set in the Budget earlier this year, following reports of delays in privatisation of BPCL. So far, the government has raised just Rs 17,364.26 crore through disinvestment proceeds with no strategic sale for the year. There are concerns over the fiscal deficit as a few reports already suggested the privatisation of BPCL was unlikely this calendar. Severe shortfall in overall tax revenues is being compounded by a large shortfall in divestment proceeds. Add to that is the deferral of spectrum-related payments by two years to provide relief to beleaguered telecom companies is already weighing heavily on fiscal finances. “We are not very disappointed because we always knew and this is going to be a tough sell both Air India and BPCL. Yes, the market would be because a lot of money was, the divestment target which I just spoke about was largely dependent on that so that is a bit of a disappointment. Otherwise, it is a still long way off,” said Nischal Maheshwari of Centrum Broking to ET Now in an interaction. Hemag Jani of Sharekhan said that when you are dealing with government divestment, delays are likely whether because of due diligence or government clearances. “So I am not really surprised by the fact that this entire, let us say BPCL divestment has been pushed to the next financial year. The key question is there any sort of seriousness in terms of government decision making and whether eventually it will happen or not. I think, two- or three-months delay is not something that one should be worried about,” he said.
ONGC gets green nod for Rs 3,500 cr project in Assam
State-run ONGC has received environment clearance (EC) for carrying out onshore exploration, development and production of oil and gas in 100 locations in non-forest area of Assam, that would entail an investment of Rs 3,500 crore, according to official documents. The Union Environment Ministry has given green clearance to ONGC, the country’s largest oil and gas exploration and production company, after taking into account the recommendations of a green panel. “The EC is however subject to obtaining prior permission from the wildlife angle, including clearance from the Standing Committee of the National Board of Wildlife,” the ministry said in a letter to ONGC. The company proposes to carry out drilling in 100 locations to evaluate the hydrocarbon potential of 21 different onshore Petroleum Mining Lease (PML) blocks in a non-forest area covering 944.39 km in Assam and Assam Arakan Basin covering whole of the Upper Assam North in Sivasagar district. After establishing the potential, the company will put the field under development and production. The project cost is estimated to be Rs 3,500 crore, the company added. According to ONGC, there is still a lot of scope in exploring new sub-surface structures in Assam for hydrocarbons. The total area of Sivasagar district PML is 957.73 square kilometre, in which Lakwa, Rudrasagar, Geleki and its adjoining areas are important oil producing fields in North Assam Shelf of Sivasagar district. So far, more than 500 wells (including exploratory wells and development wells) have been drilled in this field with depths ranging from 2,400 metre to 4,200 metre. The current EC has been granted for exploratory drilling of 100 wells which is a part of ongoing exploration efforts in various PML areas falling within the three main blocks of North Assam Shelf in Sivasagar district. India is dependent on imports for crude oil, and the government is encouraging exploration and production of oil and gas. ONGC produces 70 per cent of the country’s crude oil and 60 per cent of its natural gas.