Hydrocarbon Vision 2030 (ஹைட்ரோகார்பன் தொலைநோக்கு ஆவணம் 2030)

To address the premature deaths caused by air pollution each year, effective strategies could be
considered to scale up the dissemination of cleaner burning fuels and efficient stoves for household
cooking. Further propagation of cleaner fuels such as LPG and natural gas in the northeast region can
help reduce pollution-related deaths, thereby aiding the objectives of the National Health Mission.
Financing
Opportunities exist across all segments of the oil and gas sector to both increase its availability and
reduce its cost. However, compared with other infrastructure-intensive sectors such as power and
utilities, project finance has been less widely used by the oil and gas industry. The industry
requirement is inherently long term in nature, which can be a challenge when trying to arrange project
financing on acceptable terms. The exploration and production sector could benefit from lower cost of
capital, especially debt capital and long-term financing.
Viability gap funding (VGF) is a grant, one-time or deferred, provided to support infrastructure projects
that are economically justified but fall short of financial viability. VGF is designed to make projects that
are economically unviable over the long term commercially viable for investors. It helps mobilise
private sector investment for development projects while ensuring that the private sector still shares in
the risks of infrastructure delivery and operation. The VGF mechanism for pipeline connectivity
should be considered as a development mechanism to establish evacuation systems for the oil and
gas sector. Other options that can be considered for effective development of the oil and gas industry
in the region include:
Provision of soft loans
Issue of tax-free infrastructure bonds from public sector undertakings – GAIL, IOCL, ONGC
Development cess on petrol/diesel or aviation turbine fuel (ATF) at national level for projects
related to the northeastern region for a limited period
Increasing budget allocation from Non Lapsable Central Pool of Resources (NLCPR) of
MoDONER and North Eastern Council (NEC)
Increasing the minimum limit for VGF eligibility of projects
Make available VGF funding/budgetary support for PSUs
Hydrocarbon Vision 2030 for North East Region
Develop NER as a dominant hub at the forefront of India’s energy map by utilising its
hydrocarbon potential:
- Double production of Oil and Natural Gas (O + OEG in MMTOE)
- Access of clean fuel to 100% households in the region (LPG/PNG) at affordable price
- Bolster development through creation of service provider hubs
- Ensure availability to support growth in per capita petroleum product consumption
- Provide pipeline connectivity by installing new POL and LPG pipelines
- Development of natural gas grid, CGD networks and spur CNG Highways
- Generate employment opportunities through Industrial and skill development
- Promote manufacturing industry related to Oil & Gas in the region
- Incentivize production of bio fuel in the region for providing access to clean fuels and to
boost rural economy
- Promote trade between NER of India and neighbouring SAARC countries
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