India to import 1.73 mn tonnes LPG in FY08

India to import 1.73 mn tonnes LPG in FY08
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First Published: Tue, Aug 14 2007. 03 07 PM IST
Updated: Tue, Aug 14 2007. 03 07 PM IST
PTI
New Delhi: India is likely to import 1.73 million tonnes of LPG in the current fiscal to meet domestic demand even as the country will continue to depend on the fuel supply from overseas for next couple of years.
Domestic production of LPG by oil companies, both private and public, during 2006-07 was 8.454 million tonnes as against the demand of 9.75 million tonnes, Minister of State for Petroleum and Natural Gas Dinsha Patel informed Rajya Sabha in a written reply today.
India imported 2.288 million tonnes of LPG in 2006-07, down from 2.883 million tonnes in the previous fiscal.
This year the LPG import has been pegged at 1.73 million tonnes, while for the next fiscal it has been put at 1.55 million tonnes.
“In order to reduce the import, domestic production of LPG in the country is sought to be increased through refinery expansion or modernisation plans, implementation of LPG maximisation project and enhanced capacity utilization as also through supply of piped natural gas,” he said.
The LPG deficit will reduce to 100,000 tonnes by 2011-12 from 2.288 million tonnes in 2006-07, he added.
To another question, Patel said ONGC is exploring feasibility and undertaking due diligence for setting up an optimum capacity well head refinery in Rajasthan.
“ONGC has informed that fiscal incentives of the oder of Rs1,300 crore a year for 15 years would be needed to make the 7.5 million tonnes a year project viable,” he said.
The matter was being discussed between ONGC and the state government, he said, adding ONGC was continuing optimization studies for improving techno-commercial viability of the refinery.
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First Published: Tue, Aug 14 2007. 03 07 PM IST
More Topics: LPG | ONGC | imports | Dinsha Patel | Money Matters |