[Economics] Petroleum in India

Economics

Petroleum in India

(01) India’s ranking in energy consuming:

·        Ranking energy consumers: China > US > Russia > India (4th largest)

·        by 2025: India will become 3rd largest consumer of energy

(02) Refineries in India:

Joint Venture	2
Private	3
Public Sector	17
Total	22

 (2.1) Joint Venture Refineries:

JV between	Where?
Bharat petroleum + Oman	Bina (Madhya Pradesh)
HPCL + Mittal	Bathinda, Punjab

(2.2) Private Refineries:

Reliance	1.              Jamnagar SEZ, Gujarat 2.              Mothikhavdi, Jamnagar, Gujarat
Essar	3.              Vadinar, Gujarat

(2.3) Public Sector Refineries:

1	IOCL	Guwahati, Assam	9	HPCL	Mumbai, Maharashtra
2	IOCL	Barauni, Bihar	10	HPCL	Vizag, Andhra Pradesh
3	IOCL	Koyali, Gujarat	11	BPCL	Mumbai, Maharashtra
4	IOCL	Haldia, West Bengal	12	BPCL	Kochi, Kerala
5	IOCL	Mathura, Uttar Pradesh	13	CPCL	Manali, Himachal Pradesh
6	IOCL	Digboi, Assam	14	CPCL	Nagapattinam, Tamil Nadu
7	IOCL	Panipat, Haryana	15	NRL	Numaligarh, Assam
8	IOCL	Bongaigaon, Assam	16	MRPL	Mangalore, Karnataka
			17	ONGC	Tatipaka, Andhra Pradesh

(03) Survey: Oil production challenges

·        Except KG basin and Rajasthan- all Indian oil fields are ageing, therefore declining production

·        Refineries are not upgraded, shortage of men, crude oil and capital.

·        Environmental issues, bandh/blockades aggravating the problem.

·        Solution: OVL should acquire more assets abroad.

(04) OVL assets abroad:

·        OVL: ONGC Videsh ltd.

·        Has petroleum assists in from Sudan, Vietnam, Venezuela, Brazil, Columbia, Russia, Syria and South Sudan.

·        But production declined due to Geopolitical problems in South Sudan & Syria.

·        OVL also has operations in South China Sea near the coast of Vietnam.

·        But China is objects, stating that the entire area belongs to them and Brunei, the Philippines and Vietnam have no rights over it.

·        Therefore, none of them can partner with India to explore hydrocarbons in South China Sea.

(05) Budget 2014: Diesel & LPG:

Diesel	LPG
§                  Will deregulate diesel, unless international crisis causes negative impact on crude oil supply (e.g. ISIS-Iraq, Syria, Israel-Palestine) §                  As such Government’s plan is to raise the diesel prices at 0.50 paisa per month. Thus by, December 2014 diesel will be completely “deregulated.”	§                  We’ll continue providing subsidized LPGs. §                  Earlier UPA Government had changed no. of subsidized LPGs to 6, then 9 and finally 12. §                  We’ll decide a “realistic” number of subsidized cylinders for each family.

(06) LPG Subsidy Mechanism:

	Subsidized Cylinder	Non – Subsidized Cylinder
Price	400+	1200+
By	Oily Ministry decides the price	PSU oil companies decide the price First of every month They use formula for average imported cost and rupee dollar rate during last month Additional cylinders have to be bought at market prices
2012	6 cylinders
2014 (UPA)	12 (after Rahul Gandhi demanded)
2014 (BJP)	Soon will decide a ‘reasonable’ number of subsidized cylinders

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[Polity] Constitutional and Non-Constitutional Bodies

Polity

Constitutional Bodies & Non – Constitutional Bodies

Constitutional Bodies	Non – Constitutional Bodies
Election Commission	Planning Commission
UPSC	National Development Council
State Public Service Commission	National Human Rights Commission
Finance Commission	State Human Rights Commission
National Commission for SCs, STs, OBCs	Central Information Commission
Comptroller and Auditor General of India	State Information Commission
Special Officer for linguistic Minorities	Central Vigilance Commission
Attorney General of India	Central Bureau of Investigation
Advocate General of the State	Lokpal and Lokayuktas

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[Polity] National Parties and State Parties

Polity

National & State Parties

State Party	National Party
If any of the following conditions is fulfilled	If any of the following conditions is fulfilled
If it secures 6% of the valid votes polled in the State at a general election to the legislative assembly of the state concerned; AND, in addition it wins 2 seats in the Assembly of the State concerned	If it wins 2% of seats in Lok Sabha (11) at a general election; AND these candidates are elected from  atleast three different States
If it secures 6% of the valid votes polled in the State at a general election to the Lok Sabha from the State concerned; AND, in addition, it wins 1 seat in the Lok Sabha from the State concerned	If it wins 6% of valid votes polled in 4 or more States at a general election to Lok Sabha or to the Legislative Assembly; AND in addition, it wins 4 seats in Lok Sabha from any State or States
If it wins 3% of seats in the Legislative Assembly at a general election to the Legislative Assembly of the State concerned OR 3 seats in the Assembly, whichever is more	If it is recognised as a State party status in 4 states or more
If it wins 1 seat in the Lok Sabha for every 25 seats OR any fraction thereof allotted to the State at a general election to the Lok Sabha from the State concerned
If it secures 8% of the total valid votes polled in the State at a General Election tot eh Lok Sabha from the State OR to the Legislative Assembly of the State [this was added in 2011]

Must fulfill these conditions for all subsequent Lok Sabha or State elections; else, they lose their status.

Present status:

·        National Parties – 6 (BSP, BJP, CPI, CPI-M, INC and NCP)

·        State Parties - 47

·        Unrecognized Parties - 1563

·        Total Registered Parties – 1616

Recognised National Parties and State Parties
General Elections (Year)	Number of National Parties	Number of State Parties
First (1952)	14	39
Second (1957)	4	11
Third (1962)	6	11
Fourth (1967)	7	14
Fifth (1971)	8	17
Sixth (1977)	5	15
Seventh (1980)	6	19
Eighth (1984)	7	19
Ninth (1989)	8	20
Tenth (1991)	9	28
Eleventh (1996)	8	30
Twelfth (1998)	7	30
Thirteenth (1999)	7	40
Fourteenth (2004)	6	36
Fifteenth (2009)	7	40
Sixteenth (2014)	6	47

Benefits of registered political party:

·        Can accept donations (but government company cannot give election fund)

·        Gets first preference to pick symbol (Independent candidate cannot)

·        Need only one proposer while filling nomination form

·        Gets one copy of electoral rolls free. (in general election)

·        Gets two copies of electoral  rolls free (when rolls are revised)

·        Can broadcast/telecast facilities over the ‘boring’ Akashvani/Doordarshan during general elections.

·        Can nominate “Star Campaigners” during General Elections.

Star Campaigners:

·        Travel expenses of star campaigners are not to be accounted for in the election expense accounts of candidates of their party.

Party	National / State	Un – Recognized Party
How many Star Campaigners?	40	20

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