The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval for setting up of Indian Institute of Petroleum and Energy (IIPE) at Visakhapatnam Andhra Pradesh as “an Institute of National Importance” through an Act of Parliament. The Institute will have the governance structure as well as legal mandate to grant degrees in a manner similar to that enjoyed by IITs. A separate Act will also impart the required status to the Institute to become a “Centre of Excellence” in petroleum and energy studies.
The Cabinet has also approved Rs 6.5546 billion as capital expenditure to set up IIPE and contribution of Rs 2 billion towards its Endowment Fund (in addition to a contribution of Rs 2 billion from Oil Companies towards the Endowment Fund). As committed under the 13 Schedule of Andhra Pradesh Reorganization Act, 2014, it has been decided to set up this Institute. The objective is to meet the quantitative and qualitative gap in the supply of skilled manpower for the petroleum sector and to promote research activities needed for the growth of the sector. The academic and research activities of IIPE will derive strength from the Institute’s proximity to sector-related activities such as KG-Basin, Visakhapatnam refinery and the planned Petrochemical complex at Kakinada.
Andhra Pradesh Government has allocated 200 acres of land, free of cost, for setting up of IIPE at Sabbavaram Mandal in Visakhapatnam district. IIPE has been registered as a Society under the AP Society Registration Act, 2001 on 18/04/2016. A temporary campus of IIPE has been set up from academic session 2016-17 from the Andhra University Campus with two undergraduate programmes namely, Petroleum Engineering and Chemical Engineering (with capacity of 50 students each). IIT, Kharagpur has taken up the responsibility of mentoring the Institute.
Cabinet approves policy for Purchase Preference in all PSUs under Petroleum Ministry
The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval for Policy to provide Purchase Preference (linked with Local Content (PP-LC) in all Public Sector Undertakings under Ministry of Petroleum & Natural Gas. The Policy will be applicable for five years. A steering committee will be constituted to oversee implementation of the Policy and carry out annual review and recommend continuation of the policy from year to year basis. Under the Policy, the targets of Local Content (LC) will be stipulated for certain oil and gas business activities.
The manufacturers/ service providers who meet the local content targets and whose quoted price is within 10% of the lowest valid price bid would be eligible for purchase preference for a stipulated portion of the purchase order on matching such price. The Policy is expected to encourage suppliers and service providers to progressively adopt 'Make in India' practices and add value to their goods and services within the country.
The Policy will apply to all the Public Sector Enterprises and their wholly owned subsidiaries, Joint Ventures that have 51% or more equity by one or more Public Sector Enterprises, attached and subordinate offices of Ministry of Petroleum and Natural Gas. The 'Make in India' initiative was launched by Prime Minister in September, 2014 as part of a wider set of nation-building initiatives devised to transform India into a global design and manufacturing hub. In tune with this campaign, the Government has decided to incentivize the growth in local content in goods and services while implementing oil and gas projects in India through a policy for providing Purchase Preference to the manufacturers/ service providers who meet the local content targets in oil and gas business activities.