Mumbai, May 22 (IANS): A High-Level Committee (HLC) formed by the government on Tuesday submitted its recommendations to reduce import dependency to Petroleum and Natural Gas Minister Dharmendra Pradhan.

According to an official statement, the reports "looked into merger, acquisition and consolidation of Oil and Gas PSUs and the joint ventures; explored the need and possibility of formation of new entity dealing with oil services."

The committee was set up by the government to examine issues relating to preparation of an action plan to create synergy among R&D centres of oil and gas PSUs, tax issues and ways the oil and gas PSUs could benefit from GST.

During 2018, India consumed 204.92 MMT of petroleum products and 58.64 BCM natural gas, whereas domestic production of crude oil and natural gas has almost stagnated.

The import dependency of crude oil and LNG during the year was 82.59 per cent and 45.89 per cent, respectively, and is likely to increase in days to come. During 2018, petroleum import (Rs 7,028.37 billion) was 23.42 per cent of total gross import (Rs 30,010.2 billion) of the nation.

India's projected oil demand is going to grow at a CAGR of four per cent during 2016-2030 against the world average of one per cent though the projected oil demand will be much lower as compared to the US and China.