The Indian Petroleum Sector has been opened to the private sector, both domestic and foreign, for investments through joint ventures and strategic alliances. Even in E&P, Indian Oil and natural gas fields have been opened up to the private sector as well as to foreign participation under production sharing contracts as per New Exploration Licencing Policy (NELP). The refining sector has been opened to joint sector (public-private) partnerships as well as to the private sector for new refineries. The current permissible foreign investment in different categories is as follows : 100% in E&P acreage identified under the NELP, 51% for petroleum products and pipelines, 74% in infrastructure related to marketing of petroleum products, 26% in state-owned refineries and 49% in refineries set up as joint ventures in partnership with a private company.
Petroleum is the most important source of energy which accounts for about 32% of India’s total energy requirements next only to coal. The Indian Oil & Gas sector accounts for more than 30% of India’s oil imports and contributes over 20% of the national revenue through payment of customs and excise duties.
India is currently the fourth largest oil consumer in the Asia-Pacific region after Japan, China and South Korea and its consumption is estimated to be increasing at the rate of 7% per year.
The need to establish a single training and educational institution has been felt for a long time to render expert Technical and Management Training to the existing petroleum industry, provide world class multi-disciplinary techno-management and academic programmes in the petroleum sector for creating Human Resource of the future on a global basis to meet the emerging demand scenario in India and abroad in this field. The establishment of RGIPT is a step in the above direction.
The Institute is being set up at Jias, Rai Bareilly at an estimated cost of Rs. 685 crore including the cost of land. Out of this, an amount of Rs.150 crore comprising cost of land (Rs.45 crore) and Capital Expenditure (Rs.105 crore) will be borne by OIDB. Constituent Oil PSUs viz. ONGC, OIL, GAIL, IOCL, BPCL and HPCL would contribute to endowment fund of Rs.250 crore in the ratio of their profit after tax during the financial year 2005-06. Rs.285 crore would be met from budgetary support from Government of India through MOPNG or Ministry of Human Resource Development. The RGIPT has been registered in the name of RGIPT Society on 31.08.2006.
47.50 acre of land has been acquired at Jias, Rai Bareli by entering an agreement with Indian Oil Tanking Limited, a Joint Venture of IOCL. The cost of land is Rs.3.77 crore. OIDB has released an amount of Rs.4.25 crore to RGIPT for procurement of land and registration charges. A budget provision of Rs.25 crore has been made for RGIPT for the year 2007-08 towards procurement of land (47.5 acre), purchase of equipments, teaching, learning material etc. The remaining funds will be released as per actual requirement. The first advisory council meeting and annual general meeting of RGIPT were held and the annual accounts for the year 2006-07 have been adopted.
