Country Analysis: India

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Country Analysis: India

05-03-03 The Republic of India (India), the world's sixth largest

energy consumer, plans major energy infrastructure investments to

keep up with increasing demand -- particularly for electric power.

India also is the world's third-largest producer of coal, and relies

on coal for more than half of its total energy needs.

Information contained in this report is the best available as of

March 2003 and can change.

 

India's economic growth is currently recovering from a mild slowdown

in 2002, which was mainly attributable to weak demand for

manufactured exports and the effects of a drought on agricultural

output. Real growth in the country's gross domestic product (GDP) was

4.8 % for 2002, and is projected to rise to 5.7 % in 2003. (The

Indian fiscal year for economic statistics begins on April 1.)

The economic effects of recent political tensions in the region have

been quite modest. After many years of pursuing economic policies

based on import substitution and state ownership of key industries,

India's government embarked on a series of economic reforms in the

mid-1990s.

Included in the reforms have been a relaxation of restrictions on

foreign ownership in some sectors, and the privatisation of some

industrial enterprises. After much delay, the Indian government

decided in January 2003 to move forward with the sale of majority

stakes in two downstream oil companies, which has been seen as a

major development.

 

India has a longstanding territorial dispute with Pakistan over the

ownership of Kashmir, which has led to a tense relationship between

the two countries since the partition of British India in 1947. After

a large-scale mobilization of military forces along their border

during most of 2002, tensions eased somewhat late in the year, and

both sides have pulled back some of their forces from the border.

India's rivalry with Pakistan has direct relevance to the country's

energy sector, as it impedes plans for regional natural gas and/or

oil pipelines (i.e., from Central Asia).

India has implemented a series of policy changes since the mid-1990s

to encourage foreign investment. Tariffs on imported capital goods

have been lowered, and in some cases eliminated (such as equipment

for large scale power generation projects). Restrictions on foreign

ownership have been relaxed.

Previously, foreign ownership usually had been limited to a minority

ownership stake. Now, in many sectors, majority foreign ownership is

permitted. In some areas, however, reform has been slow --

particularly the energy sector. Electricity consumption is still

supported by heavy subsidies, and the formal end of the Administered

Pricing Mechanism (APM) for petroleum products in April 2002 did not

completely end government controls on petroleum product prices.

Annual foreign direct investment (FDI) in India has hovered in the

range of $ 3-4 bn over the last several years, though, compared to

roughly $ 40 bn per year of FDI in China.

 

Oil

Oil accounts for about 30 % of India's total energy consumption. The

majority of India's roughly 5.4 bn barrels in oil reserves are

located in the Bombay High, Upper Assam, Cambay, Krishna-Godavari,

and Cauvery basins. The offshore Bombay High field is by far India's

largest producing field, with production of 203,000 bpd in 2001.

India's average oil production level (total liquids) for 2002 was

759,000 bpd. India had net oil imports of over 1.2 mm bpd in 2002.

Future oil consumption in India is expected to grow rapidly, to 3.2

mm bpd by 2010, from 2.0 mm bpd in 2002. India is attempting to limit

its dependence on oil imports somewhat by expanding domestic

exploration and production. To this end, the Indian government is

pursuing the NELP, first announced in 1997, which permits foreign

involvement in exploration, an activity long restricted to Indian

state-owned firms.

 

While the initial response to the 1999 tender was disappointing, with

no bids received from the major multinational oil companies (causing

an extension of the deadline for submission of bids), India proceeded

with the award of 25 oil exploration blocks in early January 2000.

The largest winner in the bidding round was India's domestic Reliance

Industries, in partnership with independent Niko Resources of Canada,

which received 12 blocks.

British independent Cairn Energy, Russia's Gazprom, the US firm

Mosbacher Energy, and Geopetrol of France were all awarded single

blocks in partnership with Indian firms. India's state-owned ONGC was

awarded eight blocks, three of which it will hold in partnership with

other public-sector Indian firms.

 

A second round of bidding, with a total of 25 blocks offered,

concluded in March 2001. Sixteen of the blocks have been awarded to

ONGC, and four blocks to Hardy Oil of the United Kingdom, in

partnership with India's Reliance Petroleum. The others were either

awarded to smaller independent firms or failed to receive bids. As

with the first round, no bids were received from major international

oil companies. Bids for the third round were received in August 2002,

with a total of 27 blocks offered.

Awards under this third round were made in February 2003, with

domestic Indian firms receiving most of the blocks. Reliance

Industries received nine offshore blocks, one adjacent to the Krishna-

Godavari Basin. ONGC was awarded 13 blocks, five offshore and eight

onshore. The Gujarat State Petroleum Corporation received one.

 

Low drilling recovery rates are a major part of the oil supply

problem for India. Recovery rates average only around 30 % in

currently producing Indian fields, well below the world average. It

is hoped that allowing foreign investment will bring in technology

that is not available to Indian state firms, thereby increasing

overall recovery rates.

ONGC currently is undertaking a project to increase recovery rates in

the Bombay High offshore field and several others as well, aiming to

boost the overall recovery rate for its production assets from 28 %

to 40 %. Recent experience does not support an optimistic view about

India's prospects for s sharp increase in oil production as no major

new finds have been made in recent years. Analysts consider it likely

that most of India's easily recoverable oil has been discovered.

 

The main cause for hope is offshore exploration, and in particular

deep water exploration. One onshore area which also has shown promise

is western Rajasthan, and a small find was reported in early 2001 by

Cairn Energy offshore from Gujarat which is believed to hold about

200 mm barrels of recoverable reserves. Most recent drilling,

however, has found natural gas rather than crude oil.

BG purchased a 30 % stake in the Panna, Mukta, and Tapti offshore oil

and gas fields in February 2002, which had previously been held by

Enron. A dispute between BG and ONGC, which owns a 40 % interest in

the fields, over which firm would operate them was resolved in

February 2003 with a "joint operatorship agreement." Reliance

Industries holds the other 30 % stake.

 

Downstream/refining

For most of the 1990s, India imported a large quantity of refined

products, lacking the refining capacity to keep up with growing

demand. In 1999, refinery construction allowed India to close the

gap. At the end of 2002, India had a total of 2.1 mm bpd in refining

capacity, an increase of 970,000 bpd since 1998. In late summer 1999,

Reliance Petroleum's huge Jamnagar refinery came onstream.

It has since reached its full capacity of 540,000 bpd. Jamnagar does

not have its own retail distribution network, but sells its product

through three of the state-owned firms. It plans to build a retail

network of its own in coming years. Refinery construction has been

encouraged by regulatory changes by the Indian government, including

a five-year tax holiday for refineries completed by 2003.

 

Another major downstream infrastructure development is the

construction of pipelines being undertaken by Petronet India, a

company created by an agreement in 1998 between India's state-owned

refineries, which will add 500,000 bpd to India's current 325,000 bpd

capacity for pipeline transportation of refined products. Pipelines

between refineries and major urban centres are replacing rail as the

main mode of transportation.

While retail gasoline sales are still controlled by state firms,

several multinationals have entered the Indian lubricants market,

which was deregulated five years ago. Over one-third of the market is

currently held by such firms as Shell, ExxonMobil, and Caltex. While

these operations are relatively small, they are seen as allowing the

majors to study the Indian market, establish brand recognition, and

prepare for the eventual deregulation of the Indian retail petroleum

products sector. Still, a requirement that foreign firms invest at

least $ 400 mm before entering the downstream market has served to

limit their entry into petroleum products retailing.

 

Industry restructuring and price deregulation

The Indian government officially ended the Administered Pricing

Mechanism (APM) for petroleum product prices in April 2002. Prior to

this deregulation, the Indian government had tried to offset the

effects of price changes in crude oil by maintaining an Oil Pool

Account, which was to build financial reserves when crude oil prices

fell and release them back as increased subsidies when crude oil

prices rose.

In practice, though, the April 2002 reforms have not completely

removed government influence on petroleum product prices. Subsidies

have been maintained on some products, such as kerosene, which is

commonly used as a cooking fuel by low-income households in India.

State-owned downstream companies also still must submit proposed

price changes to the Ministry of Petroleum and Natural Gas for

approval. There have been some indications that this approval process

has been used in late 2002 and early 2003 to curb increases in

petroleum product prices as crude oil prices have risen.

 

After an extended delay due to internal policy debates, the Indian

government announced a decision in December 2002 to sell off majority

stakes in two of the largest state-owned downstream oil companies,

Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL). HPCL is

slated to be sold off to a "strategic" buyer -- another major oil

company. BPCL's shares will be offered through a public stock

offering.

The Indian federal government currently owns 51 % of HPCL and 66 % of

BPCL. The divestments are planned for the second half of 2003.

 

Natural gas

Indian consumption of natural gas has risen faster than any other

fuel in recent years. From only 0.6 tcf per year in 1995, natural gas

use was nearly 0.8 tcf in 2000 and is projected to reach 1.2 tcf in

2005 and 1.6 tcf in 2010. A major development in December 2002 was

the announcement by Reliance Industries of its discovery of a large

amount of natural gas in the Krishna-Godavari Basin offshore from

Andhra Pradesh along India's southeast coast. New reserves from this

find are estimated at about 5 tcf. Cairn Energy also reported finds

in late 2002 offshore from Andhra Pradesh as well as Gujarat, which

contain reserves estimated at nearly 2 tcf.

Even with these new reserves, India's domestic natural gas supply is

not likely to keep pace with demand, and the country will have to

import much of its natural gas, either via pipeline or as LNG. The

main market impacts from the new finds will be on India's east coast,

which currently lacks extensive natural gas infrastructure.

 

While EIA's current forecast in the International Energy Outlook 2002

predicts a 6.1 % annual growth rate in natural gas consumption, this

reflects a substantial downward revision from previous forecasts,

which had projected consumption of 2.7 tcf per year by 2010. Problems

with financing LNG import projects have dimmed some of the previous

prospects for explosive growth in natural gas consumption in India,

and helped to revive interest in pipeline import options. Financial

problems in the power sector, the main consumer of natural gas, also

have had a negative effect.

Most of India's current natural gas production takes place in the

Bombay High basin and the state of Gujarat. Current projects include

enhancing natural gas production at the Tapti fields and recovering

previously flared natural gas at the Bombay High oilfield.

 

India is investing heavily in the infrastructure required to support

increased use of natural gas. Gas Authority of India Limited (GAIL),

a government-owned entity, is in the process of doubling the

throughput capacity on its main Hazira-Bijaipur-Jagdishpur (HBJ)

Pipeline.

Work on the capacity expansion began in 2002, and will eventually

raise the capacity of the line from about 1.1 bn cfpd to 2.1 bn cfpd.

GAIL also plans a new distribution network in West Bengal and a

pipeline which would connect Calcutta with Chennai. Shell has signed

a memorandum of understanding with the state government of Uttar

Pradesh in northern India for the development of a natural gas

distribution infrastructure.

 

India's FIPB had approved 12 prospective LNG import terminal projects

in the mid-to-late-1990s, but it was never considered likelythat all

would be built in the near future, as their combined capacity would

have exceeded even the most optimistic demand projections. The Indian

government froze approvals of new LNG terminals in 2001, and the

payment problems at the Enron-backed Dabhol Power Plant in

Maharashtra have led many to question the financial viability of some

of the LNG import projects.

Since the main consumers of the imported gas would be power

producers, the poor financial condition of most of the state power

boards which purchase power and run the transmission grids is likely

to be a major constraint on the development of LNG imports.

 

The largest state sector projects are to be conducted by Petronet, a

joint venture between ONGC, IOC, the Gas Authority of India Ltd.

(GAIL), the National Thermal Power Corporation (NTPC), and Gaz de

France. Under the current plan, each of the state firms would own a

10 % stake, the Gujarat state government will own a 5 % stake, and

the rest will be offered to private investors, possibly including an

equity stake for Qatar's RasGas, the main supplier of LNG for the

project.

Petronet plans two import terminals, one at Dahej and the other at

Cochin. The import terminal at Dahej currently is under construction,

and is expected to be completed in late 2003. RasGas is to begin

supplying LNG to Petronet when the Dahej terminal is completed. The

Dahej terminal has had advantages over some of the other proposed

projects, being tied in with the main state-owned natural gas

company, GAIL, and the existing HBJ pipeline network. It is unclear

whether sufficient demand will exist to support a planned 2007

completion date for the Cochin import terminal.

 

Shell also has begun construction of its LNG import terminal at

Hazira in Gujarat, and has contracted for LNG supplies from Oman. The

facility is scheduled to begin operation in 2005. Like the Petronet

Dahej terminal, it is to be signed into existing natural gas

pipelines.

The Dabhol LNG terminal was nearly finished at the time construction

was halted in June 2001, and it will likely be completed by another

firm once a buyer is found for the now-bankrupt Enron's 65 % share of

the project. Two other American firms involved in the project,

General Electric and Bechtel, which each now own 10 %, are reported

to be in the final stages of negotiations to acquire the stake

formerly held by Enron.

 

In the wake of the problems with Dabhol, firms backing several other

LNG projects pulled out in the second half of 2001. Dhaksin Bharat

Energy, a consortium including CMS Energy and Unocal, also announced

the cancellation of its planned LNG project at Ennore. TotalFinaElf

has suspended further action on its planned LNG import terminal at

Trombay.

These LNG projects were cancelled largely in response to the Indian

government's decision not to extend sovereign payment guarantees to

power projects which were to have been among their largest customers.

Another proposed project at Kakinada on India's east coast may be

jeopardized by cheaper natural gas supplies which will become

available once Reliance Industries offshore new offshore finds are

developed.

 

Aside from LNG imports, imports of natural gas by pipeline may play a

role eventually in satisfying India's gas needs. One possibility

would supply India with natural gas from Iran's huge South Pars field

via a pipeline, either subsea or through Pakistan. Iran has discussed

the proposal with India and Pakistan.

Australia's Broken Hill Proprietary (BHP) is the main foreign backer

of the idea. An offshore route bypassing Pakistan is under study by

Snamprogetti of Italy. Pakistan had said in early 2001 that it would

allow supplies to cross its territory, and Iran would bear the

contractual responsibility for assuring gas supplies to India, but

the project does not appear likely to be implemented in the near

future due to the obvious security concerns for India.

 

Another possible import route would link the natural gas reserves of

Bangladesh into the Indian gas grid. Current proven reserves of

natural gas in Bangladesh are at least 14 tcf, but the foreign firms

involved in natural gas exploration in Bangladesh, which includes

Unocal, believe that reserves are higher.

Shell, which backs exports to India, has estimated Bangladeshi

natural gas reserves at 38 tcf, and a study by the US Geological

Survey put the country's probable reserves at 32 tcf. Bangladesh has

been reluctant to approve exports to India, however, until all

questions about reserves and its domestic supply have been resolved.

 

Shell reportedly has been in negotiations with Unocal about possible

imports of Bangladeshi gas for its distribution projects in Uttar

Pradesh, and Unocal made a formal proposal to the Bangladeshi

government for gas exports in October 2001. As of February 2003, the

Bangladeshi government is still considering the idea, and has not

reached a final decision. The new natural gas reserves discovered off

Andhra Pradesh in 2002 could compete with imports from Bangladesh,

thus increasing the pressure to reach a decision in the near future.

India's government has been considering reforms in its natural gas

pricing mechanism, which is currently set by the government.

Deregulation has been delayed several times, and the recent increase

in domestic reserves may lead to a tilt toward less regulation of

prices, making LNG importers compete with domestic natural gas

suppliers.

 

Coal

Coal is the dominant commercial fuel in India, satisfying more than

half of India's energy demand. Power generation accounts for about 70

% of India's coal consumption, followed by heavy industry. Coal

consumption is projected in the International Energy Annual 2002 to

increase to 450 mm short tons in 2010, up from 369 mm short tons in

2000.

This is a substantial increase in the rate of growth projected in

previous forecasts. India is the world's third largest coal producer

(after China and the United States), so most of the country's coal

demand is satisfied by domestic supplies. Indian coal generally has a

high ash content and low calorific value, so most coking coal must be

imported. Major Indian coal fields are found in Bihar, West Bengal,

and Madhya Pradesh.

 

The Indian government controls almost all coal production, which has

been plagued by low productivity, distribution problems, and loss of

markets to higher quality, less expensive imports. Nearly all of

India's 390 mines are under Coal India Ltd. (CIL), which accounts for

about 90 % of the country's coal production.

Current policy allows private mines only if they are "captive"

operations which feed a power plant or factory. The current

government has called off plans for further coal-sector

liberalization in the face of strong opposition from labour unions.

 

Electricity

India is trying to expand electric power generation capacity, as

current generation is seriously below peak demand. Although about 80

% of the population has access to electricity, power outages are

common, and the unreliability of electricity supplies is severe

enough to constitute a constraint on the country's overall economic

development. The government had targeted capacity increases of

100,000 MW over the next ten years. As of January 2001, total

installed Indian power generating capacity was 112,000 MW.

The drive to increase the country's generating capacity, along with

the general trend toward economic liberalization in India in the

1990s, led to much interest among foreign investors in setting up

Independent Power Producers (IPPs) in India. While dozens of projects

were approved, most of the largest projects have been stalled by

delays in regulatory approvals and in some cases failure to secure

adequate financing.

 

India's state electricity boards (SEB's), which run the power

distribution infrastructure and own most current generating capacity,

are in very poor financial shape, with many of them technically

insolvent. One reason is the sale of power at subsidized rates, which

does not cover costs (particularly in the agricultural sector).

Other problems include the high level of transmission and

distribution losses and widespread power theft. Since the SEBs would

be the main purchasers of power from IPP projects, resolving their

financial problems is critical to attracting the capital necessary to

ensure the country an adequate supply of electric power.

While India currently does not have a unified national power grid,

the country plans to link the SEB grids eventually, and has set up a

state company, Powergrid, to oversee the unification. India also

plans to establish national and state level regulatory bodies to set

tariffs and promote competition.

 

In July 1998, the Indian government announced an easing of rules

related to foreign investment in the power sector. Proposals for

investments up to 15 bn rupees (about $ 350 mm) involving up to 100 %

foreign equity now will be approved automatically.

Automatic approval will be given for investments in generation or

distribution from hydroelectric, coal, lignite, oil, or gas power

plants, but not for nuclear plants andassociated distribution

networks. The earlier policy had allowed for only up to 74 % foreign

equity. Still, the financial problems of the SEBs have prevented

substantial foreign investment from flowing into India's electric

power sector. India's government approved a large number of "mega-

projects," defined as plants with capacity of more than 1,000 MW for

thermal plants and more than 500 MW for hydroelectric plants, from

the mid-to-late-1990s, but project approvals have often not led to

construction.

 

The 740-MW initial phase of the Dabhol LNG-fired power plant began

operation in May 1999, and Phase II, which would add 1,440-MW of

capacity, is about 90 % complete. Payment problems with the

Maharashtra State Electricity Board (MSEB), however, prompted Enron-

backed Dabhol Power Corporation (DPC) to serve notice of breach of

contract on MSEB in May 2001.

Construction on Phase II was halted in June 2001. General Electric

and Bechtel, each of which own existing 10 % stakes in DPC, have

reportedly been negotiating in recent months for the purchase of the

65 % stake held by the now-bankrupt Enron, as well as payment

guarantees from the Indian federal government.

 

Due to the financial problems of the SEBs, a large number of foreign

firms cancelled or delayed power generation projects in India between

1999 and 2001: The largest of the power projects which had obtained

government approval, the $ 5 bn, 3,960-MW coal-fired Hirma Power

Plant, was cancelled by Mirant Corporation in December 2001.

A 1040-MW coal-fired plant at Vishakapatnam was planned by Hinduja

Power and National Power (UK). In June 2001, however, the Industrial

Development Bank of India (IDBI) announced that it was withdrawing

its loan to the project, throwing its future into doubt.

 

Electricite de France has quit the coal-fired 1072-MW Bhadrawati

project in Maharashtra state. The 1,886-MW LNG-fired unit at Ennore,

with an associated LNG import terminal, was cancelled by CMS Energy

in June 2001. CMS Energy also announced in October 2001 that it was

pulling out of several smaller projects.

India's National Thermal Power Company was planning a 2,000-MW LNG-

fired plant at Pipavav, but the project has been shelved after BG

withdrew from the LNG import terminal project in June 2001. Powergrid

was planning a 1,320-MW coal-fired plant planned for Cuddalore, which

was delayed indefinitely in early 2001.

Cogentrix cancelled the 1,000-MW Mangalore coal-fired project in

December 1999. South Korea's Daewoo Power and ABB Lummus cancelled

plans for a 1,400-MW plant in Madhya Pradesh in August 2000.

 

The DPC controversy is seen by many analysts as a test case for

India's power sector, as it has demonstrated the lack of

creditworthiness of the SEBs. The Dabhol plant, valued at $ 2.9 bn,

is the largest single foreign investment in India. No major foreign-

owned projects have been launched in the past year.

The Indian government is attempting to implement reforms which would

increase the financial strength of the SEBs in an attempt to attract

capital back to electricity generation projects. New legislation on

power sector reform was approved by the Indian cabinet in February

2002, and is to be introduced in the parliament.

 

Environment

India, the world's second most populous nation, has seen its

population explode from 300 mm in 1947 to approximately 1 bn today.

This rapidly growing population has placed a strain not only on

India's infrastructure, but also on its environment. According to the

World Health Organization, New Delhi is one of the top ten most

polluted cities in the world. Two primary sources of air pollution in

India are vehicular emissions and untreated industrial smoke.

Coal is a major commercial energy source in India. Increased coal

consumption over the past four decades has led to a nine-fold

increase in energy-related carbon emissions. Environmental effects

due to the relatively high use of coal in the energy mix are

exacerbated by the low energy efficiency of coal-based electricity

generating plants. Inefficient plants are one of the contributing

factors to a steadily increasing energy consumption per unit of

output (i.e. energy intensity).

 

With the high costs associated with replacing existing coal-based

plants, it is realistic to assume that these plants will continue

running for the next couple of decades. India's per capita energy use

and carbon emissions, while lower than the world average, result in a

substantial percentage of world energy use and carbon emissions, due

to the country's large population and heavy reliance on coal.

Increased use of renewable energy is one means of reducing carbon

emissions. Two major sources of renewable energy in India are wind

power and hydroelectric plants. India's five year plan for 2002-2007

calls for 10 % of new electric generating capacity to come from

renewable sources.

India faces great challenges in energy and environment as it enters

the 21st Century. A rapidly growing population will continue to

increase demands for electricity generation and will place greater

pressures on the environment to absorb increasing vehicular

emissions.

 

Source: for this report include: Business Line; CIA World Factbook

2002; Dow Jones News Wire service; Economist Intelligence Unit;

Financial Times; Global Insight Asia Economic Outlook; Hindustan

Times; India Today; Oil and Gas Journal; Petroleum Economist;

Petroleum Intelligence Weekly; Press Trust of India wire service;

Times of India; The Statesman; US Energy Information Administration;

World Gas Intelligence.

 

Country overview

President: Abdul Kalam (since July 26, 2002)

Prime Minister: Atal Behari Vajpayee (since March 19, 1998)

Independence: August 15, 1947 (from the United Kingdom)

Population (07/2002E): 1.0 bn (2nd most populous country)

Location/size: Southern Asia/3.3 mm sq km 1.3 mm square miles), one-

third the size of the United States

Major cities: New Delhi (capital), Mumbai (Bombay), Calcutta, Chennai

(Madras), Hyderabad, Bangalore, Ahmedabad

Languages: Hindi, 17 other official languages, English

Ethnic groups: Indo-Aryan (72 %), Dravidian (25 %), Mongoloid, other

(3 %)

Religions: Hindu (80 %), Muslim (14 %), Christian (2.4 %), Sikh (2

%), Buddhist (0.7 %), Jains (0.5 %), other (0.4 %)

Defence (8/98): Army (980,000), Air Force (110,000), Navy (55,000),

Jammu/Kashmir Border Security Force (185,000)

 

Economic overview

Currency: Rupee

Exchange rate (2/24/02): $ 1 = 47.8 rupees

Gross Domestic Product (GDP, FY2002E): $ 514.4 bn

Real GDP growth rate (FY2002E): 4.8 % (FY2003E): 5.7 %

Inflation rate (FY2002E): 3.6 % (FY2003E): 4.6 %

Current account balance (FY2002E): -$ 0.9 bn

Major trading partners: United States, Japan, United Kingdom,

Germany, Russia

Merchandise trade balance (FY2002E): -$ 7.3 bn

Merchandise exports (FY2002E): $ 48.8 bn

Merchandise imports (FY2002E): $ 56.1 bn

Major export products: Gems and jewellery, engineering goods,

clothing, cotton textiles, leather and leather manufactures, iron

ore, chemicals, software

Major import products: Petroleum and petroleum products, machinery,

iron and steel, edible oils, chemicals, fertilizers

Monetary reserves (FY 2002, non-gold): $ 46.8 bn

External debt (FY2002E): $ 101.0 bn

 

Note: FY (Fiscal Year) (FY 2002 April 1, 2002 to March 31, 2003)

 

Energy overview

Energy-related ministries: Coal -- Ramvilas Paswan; Petroleum and

natural gas -- Ram Naik; Electric power -- Anant Gangaram Geete

Proven oil reserves (1/1/03E): 5.4 bn barrels

Oil production (2002E): 759,000 bpd, of which 665,000 bpd was crude

oil

Oil consumption (2002E): 2.0 mm bpd

Net oil imports (2002E): 1.2 mm bpd

Crude oil refining capacity (1/1/03E): 2.1 mm bpd

Natural gas reserves (1/1/03E): 26.9 tcf

Natural gas production (2001E): 803 bn cf

Natural gas consumption (2001E): 803 bn cf

Recoverable coal reserves (12/31/96E): 82.4 bn short tons

Coal production (2001E): 360 mm short tons

Coal consumption (2001E): 339 mmst

Net coal imports (2001E): 21 mmst

Electric generation capacity (1/1/01E): 112 GW, including 83 GW

thermal, 25 GW hydro, 2 GW nuclear

Electricity generation (2001E): 533 bn kWh (79 % conventional

thermal; 18 % hydro; 2 % nuclear)

 

Environmental overview

Minister for Environment and Forest: T. R. Baalu

Total energy consumption (2001E): 12.8 quadrillion Btu* (3.2 % of

world total energy consumption)

Energy-related carbon emissions (2001E): 251.3 mm tons of carbon (3.8

% of world total carbon emissions)

Per capita energy consumption (2001E): 12.6 mm Btu (vs. US value of

341.8 mm Btu)

Per capita carbon emissions (2001E): 0.25 tons of carbon (vs. US

value of 5.5 tons of carbon)

Energy intensity (2001E): 25,307 Btu/$ 1995 (vs. US value of 10,736

Btu/ $ 1995)**

Carbon intensity (2001E): 0.50 tons of carbon/thousand $ 1995 (vs. US

value of 0.17 tons/thousand $ 1995)**

Sectoral share of energy consumption (1998E): Industrial (41.0 %),

transportation (9.5 %), residential (47.3 %),commercial (2.2 %)

Sectoral share of carbon emissions (1998E): Industrial (67.3 %),

transportation (15.6 %), residential (13.7 %), commercial (3.3 %)

Fuel share of energy consumption (2001E): Coal (50.9 %), oil (34.4

%), natural gas (6.5 %)

Fuel share of carbon emissions (2001E): Coal (64.5 %), oil (30.3 %),

natural gas (5.2 %)

Renewable energy consumption (1998E): 9,015 tn Btu* (2 % increase

from 1997)

Number of people per motor vehicle (1998): 142.9 (vs. US value of

1.3)

 

Status in climate change negotiations: Non-Annex I country under the

United Nations Framework Convention on Climate Change (ratified

November 1st, 1993). Not a signatory to the Kyoto Protocol.

Major environmental issues: Deforestation; soil erosion; overgrazing;

desertification; air pollution from industrial effluents and vehicle

emissions; water pollution from raw sewage and runoff of agricultural

pesticides; tap water is not potable throughout the country; huge and

rapidly growing population is overstraining natural resources.

Major international environmental agreements: A party to the

Antarctic-Environmental Protocol, Antarctic Treaty, Biodiversity,

Climate Change, Desertification, Endangered Species, Environmental

Modification, Hazardous Wastes, Law of the Sea, Nuclear Test Ban,

Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical

Timber 94, Wetlands and Whaling.

 

* The total energy consumption statistic includes petroleum, dry

natural gas, coal, net hydro, nuclear, geothermal, solar, wind, wood

and waste electric power. The renewable energy consumption statistic

is based on International Energy Agency (IEA) data and includes

hydropower, solar, wind, tide, geothermal, solid biomass and animal

products, biomass gas and liquids, industrial and municipal wastes.

Sectoral shares of energy consumption and carbon emissions are also

based on IEA data.

**GDP based on EIA International Energy Annual 2001

 

Energy industry

Organization: Petroleum -- ONGC, Oil India Ltd. (OIL), IOC; Natural

gas -- Gas Authority of India Limited (GAIL); Coal -- Coal India

Limited (CIL); Electric power -- National Thermal Power Corporation

(NTPC), National Hydroelectric Power Corporation, State Electricity

Boards

Major oil fields (2001 production): Bombay Offshore: Bombay High

(203,355 bpd), B-38/Heera & S. Heera (48,000 bpd), Neelam (29,895

bpd); Eastern: Lakwa-Lakhmani (14,660 bpd); Western: Gandhar (40,000

bpd); Southern: Tiruvarur (51,165 bpd)

Major oil terminals: Bombay, Cochin, Haldia, Kandla, Madras, Vizag

Major oil refineries (1/1/03 capacity): Reliance-Jamnagar, 540,000

bpd, Koyali-Gujarat, 185,100 bpd; Mangalore, 180,000 bpd, Mathura-

Uttar Pradesh, 156,000 bpd; Mahul-Bombay (Bharat Petroleum), 120,000

bpd; Madras, 130,660 bpd, Mahul-Bombay (Hindustan Petroleum), 111,700

bpd

Major pipelines: Oil -- Salaya-New Delhi, Barauni-Digboi, Kandla-

Bhatindu (products); Natural gas -- Hazira-Bijapur-Jagdishpur

 

 

 

Source: EIA

 

 

 

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