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India's demand for petroleum products likely to rise

India's demand for petroleum products is likely to rise from 98.57 million tonnes in 2001-02 to around 118 million tonnes in 2006-07, according to the Tenth Five-Year Plan projections.

Though initially putting the demand at 134.6 million tonnes, the Plan document says poor demand for petroleum products in last two years and "increasing share of service sector, especially information technology, in GDP (with e-commerce reducing transportation requirement), the demand target may be about 118 million tonnes in 2006-07."

The Plan document put the compound annual growth rate at 3.6 per cent during the Plan Period (2002-07).

Domestic crude oil production is likely to rise marginally from 32.03 million tonnes in 2001-02 to 33.97 million tonnes by the end of 10th Plan Period (2006-07).

Natural gas production, on the other hand, will rise from 86.56 million standard cubic metres per day (mmscmd) in 2002-03 to 103.08 mmscmd in 2006-07, mainly on strength of more than doubling of production by private operators to 38.25 mmscmd, the Plan document estimated.

It is estimated that India has around 0.4 per cent of the world's proven reserves of crude oil. As against this, the domestic crude consumption is estimated at 2.8 per cent of the world's consumption.

The balance of recoverable reserves as estimated in the beginning of 2001 is placed at 733.70 million tonnes of crude and 749.65 billion cubic metres of natural gas.

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