Now Reading: Parliament panel questions Rs 1.7 lakh crore oil spend as output falls
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Parliament panel questions Rs 1.7 lakh crore oil spend as output falls
A parliamentary committee has questioned why India’s rising capital expenditure in oil and gas is not boosting domestic production, noting crude output is expected to fall to 28.7 million metric tonnes (MMT)…
The Story in Brief
A parliamentary committee has questioned why India’s rising capital expenditure in oil and gas is not boosting domestic production, noting crude output is expected to fall to 28.7 million metric tonnes (MMT) in 2024-25 from 34.2 MMT in 2018-19. Capital expenditure by petroleum PSUs rose from Rs 1.3 lakh crore in 2020-21 to a projected Rs 1.7 lakh crore in 2024-25, the committee on public undertakings said in an action taken report tabled in Parliament on Thursday.
The panel has asked the petroleum ministry to explain how recent exploration reforms and newly awarded blocks will raise production. It described the ministry’s earlier reply as interim and sought a comprehensive report with clear performance benchmarks. The ministry cited 38 offshore blocks awarded under OALP Rounds VIII and IX, nearly 1 million sq km of no-go areas opened for exploration, and the Rs 84,000 crore Samudra Manthan deepwater scheme.
The Indian Opinion
The panel’s question is just what every Indian paying at the petrol pump wants answered. The government has freed nearly 1 million sq km of offshore areas and spent thousands of crores on surveys, yet crude output keeps sliding. One-sided blame of PSUs for inefficiency ignores that most of India’s easy oil is gone and deepwater fields take years. The real test is whether the Rs 84,000 crore Samudra Manthan scheme shows production stabilising or rising by 2026. If not, the accountability mechanisms the committee demands must bite, not just fill another report.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
