MINISTER OF PETROLEUM & NATURAL GAS (SHRI RAM NAIK)
(a) to (g): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (g) OF THE LOK SABHA STARRED QUESTION NO.454 TO BE ANSWERED ON 23-08-2001 REGARDING SUBSIDY ON PETROLEUM PRODUCTS.
(a) & (b): As per the Government decisions of November 1997, subsidies on domestic LPG and Kerosene for public distribution system at 15% and 33.33% of import parity, respectively would be borne by the fiscal budget after dismantling of the administered pricing mechanism (APM). The modalities of administering subsidies have not been finalized as yet.
(c): The Government have decided to reduce their equity in selected oil companies to appropriate levels. The reasons for disinvestment include releasing of public resources locked up in Public Sector Undertakings (PSUs) for re-deployment in other priority sectors; exposing the PSUs to market discipline; reducing the public debt of Government; etc.
(d): The disinvestment of Government`s share would be carried through by following a transparent and objective procedure.
(e) & (f): There has been considerable inflow of foreign capital in exploration and production of oil and gas. However, foreign investment in some of the joint venture projects in the refining sector have not materialized on account of shrinking refining margins and reduced profitability being experienced by the refining companies globally.
(g): The Government have permitted foreign direct investment (FDI) up to 100% in exploration and production, oil refining, imports and marketing of natural gas, etc.
The number of foreign direct investment (FDI) approvals and amount involved is as follows:-
Period No. of FDI FDI approved Amount of FDI
(Jan-Dec) approval Amount Inflows+ (Rs. in crore) (Rs. in crore)
1998 37 10,109.48 563.56
1999 36 2,378.71 748.46
2000 34 989.39 484.02
2001
(Jan-June) 9 92.85 108.99
Total 116 13,570.43 1,905.03+
Note: + The amount of inflows of FDI in the Fuels sector, includes the Power & Oil Refinery Sector.
