Union Budget 2021- Reforms and Announcements for Oil and Gas Sector
While our government has kept fuel supplies running across the country without interruption during the COVID-19 lockdown period, the Indian oil and gas industry has suffered. And with the Central government’s increasing focus on Aatmanirbhar Bharat, there has been a need to reduce import dependency on crude oil.
The crucial nature of the sector in people’s lives explains the focus of this years’ Budget on the petroleum and natural gas sector and the initiatives that have been announced. Ujjwala Scheme, that was launched in 2016 to distribute LPG connections to women of Below Poverty Line families and which has already benefited 8 crores households will be extended to cover 1 crore more beneficiaries.
In addition to that, 100 more districts will be added in the next three years to the City Gas Distribution Network. Also, in a major boost to the Jammu and Kashmir union territory, a gas pipeline project will be implemented.
An independent Gas Transport System Operator will also be set up for facilitation and coordination of booking of common carrier capacity in all-natural gas pipelines on a non-discriminatory open access basis.