Date- April 21, 2011 | Place- Mumbai
As per the target development plans, the current volume of Gas production in India should have been between 58 to 60 Million standard cubic feet per day whereas the different oil and gas companies are together achieving only 50 to 52 Million standard cubic feet per day currently. This difference between the target and actuals has clearly led to big setbacks in the industry as well as to the economy of the country, which is already seeing the risk of rising inflation every month.
Due to this under achievement and to counter the future affects it might have, the Ministry of Oil and Petroleum Natural Gas has declared to review the causes behind this non-achievement of gas production targets by oil and gas companies.
On the other hand, things looks worse with Oil marketing companies (OMCs) in India reported to be facing the risk of current debt burden of bout Rs 2 lakh crore in 2011-12. This is mainly due to under-recoveries with global crude prices rising up to 120 dollar a barrel. It is to be mentioned that the OMC’s debt burden is increasing at an alarming rate from Rs 49,000 crore in 2006-07 to the current figures.
It is being expected that a comprehensive assessment of the companies will be held this week to analyses the causes of under production. The need of the hour is to take this matter up collaboratively by the Finance Ministry and the Ministry of Oil and Petroleum Natural Gas, and review the New Exploration Licensing Policy if required. If corrective and preventive measures are not enacted soon on the under achievement of gas production and recovery of debt crisis, Indian economy will continue to face even more difficult times ahead. Inflation, too will in an upward graph, with oil always playing the crucial factor.