Stating that the the status of the energy sector in India was “highly uneven”, Prime Minister Narendra Modi on Monday hinted at further reforms in many areas in the sector. At an interaction here with oil and gas CEOs and experts from across the world, he also recognised the need for a comprehensive energy policy.
“Now with this liberalised regime India offers around $300 billion investment opportunity in the next 10 years in the oil and gas sector. We want investors, both domestic and global, who can bring in the best technology and capital,” petroleum minister Dharmendra Pradhan had told the gathering during the meeting. Speaking to reporters later, Pradhan added that the prime minister urged the industry players to have more investments to have both vertical and horizontal growth in the sector.
According to the department of industrial policy and promotion (DIPP), FDI inflows into India’s petroleum and natural gas sector between April 2000 and June 2017 has been just $6.86 billion, 2% of the total inflow during the period.
A senior official associated with the government, however, said the global oil giants evinced interest to invest a whopping $1 trillion in the country over the next five years. While Saudi Aramco, which opened an office in India on Sunday, alone intends to invest $300 billion over the next three to four years, Rosneft — which had invested $13 billion for acquiring Essar Oil — has plans to ramp it up, he said. However, the oil biggies haven’t issued any such statements.