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Hydrocarbon Vision 2030 (ஹைட்ரோகார்பன் தொலைநோக்கு ஆவணம் 2030)

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Existing LPG connections in Northeast India<br />

4<br />

The Northeast has only 57.45 lakh LPG connections compared with the national figure of 1,910 lakh.<br />

However, as per ‘PAHAL-Direct Benefits Transfer for LPG (DBTL) Consumers Scheme’ the overall<br />

connection figure is around 14.25 crore (as per August 2015 data). As per IOCL’s estimates, the DBTL<br />

scheme covers almost 82% of all connections. Therefore, the total number of active connections is<br />

estimated to be at 17 crore. Further, the growth rate of LPG connections in the Northeast matches the<br />

national growth rate. The table below provides details of LPG connection in northeast India in the last<br />

decade.<br />

5<br />

Table 78: LPG connection (domestic) in Northeast India<br />

No of LPG<br />

Connections<br />

(In lakh)<br />

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015<br />

NER 24.2 26.4 28.9 30.7 31.8 34.4 36.6 40.1 44.3 49.6 57.45<br />

LPG connections 845 886 943 1010 1057 1151 1254 1371 1504 1663 1910<br />

All India<br />

% of LPG 2.9% 3.0% 3.1% 3.0% 3.0% 3.0% 2.9% 2.9% 2.9% 3.0% 3.0%<br />

connection in<br />

NER/India<br />

Source: CRISIL Infrastructure Advisory Analysis<br />

7.2.3 Future outlook - Demand for POL products by <strong>2030</strong><br />

7.2.3.1 Demand drivers<br />

Broadly, the following factors are expected to drive the increased consumption of petroleum products<br />

in northeast India.<br />

Economic growth, and resultant growth in demand from end-users<br />

Overall macroeconomic conditions are likely to determine the demand for energy and the growth rate<br />

of energy demand. India has been enjoying higher growth rates since the early 1990s because of<br />

economic reforms. However, northeast India has not been able to capitalise on this growth<br />

momentum owing to a variety of issues. But in future, the region is likely to grow at a much faster rate<br />

owing to policy initiatives at both the central as well as state level. Further, improvement in the law and<br />

order situation across the region could boost the larger development agenda, which will help improve<br />

the economic condition in the region. The robust growth outlook for the region’s economy and the<br />

resultant increase in end-user consumption is expected to drive the petroleum product market in<br />

future.<br />

Lower international crude oil prices<br />

Lower global crude oil prices will increase consumption of POL products such as petrol, LPG,<br />

naphtha, fuel oil, and low-sulphur heavy stock (LSHS).<br />

Downstream regulator in place<br />

The current regulatory mechanism provides an overarching framework to attract, enable, and sustain<br />

much-needed capital into the downstream sector. While protecting consumer interests, prevailing<br />

downstream regulations also provide a level-playing field to all infrastructure providers.<br />

7.2.3.2 Demand forecast for POL products<br />

Demand has been assessed after considering the historical consumption profile of all states in<br />

northeast India. For estimating demand, the following approach has been considered:<br />

4<br />

These figures are based on the connections data released by OMCs.Active connections are less than<br />

released connections.<br />

5<br />

As per OMCs connections data, active connections are less than released connections.<br />

121

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