New Delhi. The Central Government has taken a big step to strengthen the supply of LPG in the country. For the first time, the government has set a target of additional production for refineries and gas production companies to meet the domestic requirement in case of any interruption in LPG imports from abroad. Its objective is to maintain the availability of LPG in the domestic market in case of crisis.
Production target given to 21 companies
Under the arrangement issued by the Ministry of Petroleum and Natural Gas, 21 refineries and upstream companies of the country will have to be ready to increase LPG production if needed. A target of LPG production capacity of about 63,810 tonnes per day has been set for all the companies together. This arrangement is not an order to be implemented daily under normal circumstances. When the supply of LPG in the country is affected, then the government will be able to direct the concerned companies to increase the production in prescribed quantity.
Preparation to reduce dependence on foreign countries
A large part of LPG consumption in India is met through imports. If there is international tension or any kind of obstruction in sea routes, it may affect the domestic supply. Keeping this experience in mind, the government has prepared a plan to increase the production capacity within the country. Through the new system, efforts will be made to reduce the impact of dependence on imports by increasing domestic production in emergency situations.
Reliance's biggest target
Reliance Industries' Jamnagar-based refinery working for the domestic market has got the biggest production target as per the target set by the government. If needed, the target has been set to produce up to 18,000 tonnes of LPG per day from here. Apart from this, many other companies including Nayara Energy, ONGC and GAIL have also been given production targets as per their capacity.
Emphasis on supply, not just production
The government has not limited the companies to increasing LPG production only. In case of crisis, emphasis has also been laid on keeping the necessary infrastructure ready to keep the gas safe, transport it from one place to another and make it available to the market on time. Preparations to ensure smooth movement of LPG through rail and road tankers are also part of this arrangement.
There will be a review every six months
This arrangement related to LPG production will be reviewed from time to time. The targets of companies can also be changed in case of new refinery, gas field, technological change or increase in production capacity. The main objective of this step of the government is to ensure that the domestic LPG supply is not affected in the event of any future international crisis or interruption in imports.