Cabinet nod for incentivising projects to improve oil recovery
New Delhi, Sep 12 : In a move to boost domestic production of hydrocarbons, the cabinet on Wednesday approved a policy to incentivise improved recovery of oil and gas from aging fields.
Following a cabinet meeting, Petroleum Minister Dharmendra Pradhan said the fiscal incentives to attract investments and technology into the sector will help unlock an estimated Rs 50 lakh crore of oil and gas in the next 20 years.
"The cabinet has approved a policy framework to promote and incentivise enhanced recovery and improved recovery as well as unconventional hydrocarbon production methods and techniques to improve the recovery factor of existing hydrocarbons reserves for augmenting domestic production of oil and gas," Pradhan said.
"Because of this, new investment and technology will come and Rs 50 lakh crore worth of production will increase in 10 years," he said.
Technological interventions have significant potential in stimulating the recovery of hydrocarbon reserves from the mature and aging fields. An increase by 5 per cent in recovery rate of the original in-place volume in oil production is envisaged to produce 120 million tonnes of additional oil in next 20 years," he said.
"In case of gas, an increase of 3 per cent recovery rate on original in-place volume is envisaged, leading to additional production of 52 billion cubic metres of gas in the next 20 years," the Minister added.
Pradhan said oil companies bringing in investment and new technology in exploration would be granted a 50 per cent reduction in cess, while such companies in gas would get a discount in royalty of 75 per cent.
The policy will be applicable to all contractual regimes and nomination fields.
"The policy is expected to facilitate induction of new, innovative and cutting-edge technology and forging technological collaboration to improve the productivity of existing fields," he said.
The policy, with a sunset clause, will be effective for 10 years from the date of its notification.
However, the fiscal incentives will be available for a period of 120 months from the date of commencement of production in such projects, the government said.
"In case of improved recovery projects, the incentives will be available from the date of achievement of the prescribed benchmark. Defined timelines have been prescribed to complete the various processes under the policy," it added.
Commenting on the development, Vedanta Ltd Chief Executive (Oil and Gas) Sudhir Mathur said in a statement that the move would spur the growth of the domestic oil and gas industry.
"This policy will attract much-needed investments, and usher in a wave of best-in-class technologies to improve India's hydrocarbons recovery," he said.
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CM Siddaramaiah alleges ‘criminal conspiracy’ in Sringeri recount, vows legal action
Bengaluru (PTI): Alleging a “criminal conspiracy” by BJP candidate D N Jeevaraj in the Sringeri Assembly poll recounting, Karnataka CM Siddaramaiah on Tuesday said the outcome was manipulated after valid postal ballot votes in favour of Congress leader T D Raje Gowda were tampered with during the recounting process.
Following a Karnataka High Court order on an election petition filed by Jeevaraj, challenging Raje Gowda’s election, the reverification and recounting were conducted on Saturday.
After the reverification and recount of postal ballots for the Sringeri Assembly constituency, votes polled in favour of Raje Gowda were reduced by 255, the returning officer said.
A report on the matter has been submitted to the Election Commission of India for further action, the officer added.
Congress leader Raje Gowda had won the 2023 Assembly polls from Sringeri by 201 votes, defeating his nearest rival Jeevaraj.
Addressing a press conference in Bengaluru, Siddaramaiah said the High Court had directed the recounting of postal ballots and that irregularities were noticed during the exercise conducted on May 2.
“This is a clear case of criminal conspiracy,” Siddaramaiah said, alleging that valid votes cast in favour of Raje Gowda were altered after being accepted by counting agents of all parties, including Congress, BJP, and JD(S).
He claimed that during the recounting of postal ballots, 255 votes were initially accepted as valid by all agents but were later tampered with by subordinate officials.
“There is a second mark on the votes polled in favour of Raje Gowda. They had accepted these as valid votes. Subsequently, another mark was made by officials. This is a clear case of criminal conspiracy,” he said.
When asked who was behind the alleged conspiracy, the CM replied, “It was hatched by Jeevaraj and others. It is planned.”
Siddaramaiah further alleged that the returning officer acted improperly by declaring the result despite the presence of an Election Commission observer during the recounting.
“Immediately after the counting, the returning officer announced the result. He should not have done so; this is against the law,” he said.
He pointed out that Raje Gowda had originally won by 201 votes, but after the recounting, the BJP candidate was declared the winner by 52 votes.
“The BJP has committed a criminal act of conspiracy. This is not vote chori but vote dacoity,” he alleged.
The CM said a police complaint had already been filed by Raje Gowda’s election agent, Sudhir Kumar, and emphasised the need for electoral integrity.
“We want transparency and free and fair elections. That is what our Constitution mandates,” he added.
Stating that the government would pursue legal remedies, Siddaramaiah said, “We are preparing an appeal challenging the returning officer’s announcement in a court of law.”
Responding to a separate query on elections in other states, the CM said there appeared to be an anti-incumbency factor in West Bengal, while results in Tamil Nadu were “surprising,” adding that Vijay’s party was emerging as the largest there.
Following the victory of party candidates in Bagalkote and Davanagere South, Siddaramaiah expressed confidence about future electoral prospects in Karnataka.
“Even in 2028, we will win the Assembly elections. We will come back,” the CM said.
Siddaramaiah added that he would order a forensic examination into the alleged tampering of postal ballots.
