Oil and gas sector will see $118 billion investment in next few years: Pradhan
NEWDELHI: India will see an investment of $118 billion in oil and gas exploration as well as in setting up of natural gas infrastructure in the next few years as the country prepares to meet the needs of a fast growing economy, oil minister Dharmendra Pradhan said on Monday.
As much as $58 billion will be invested by 2023 in oil and gas exploration and production, while, another $60 billion will be put in creation of natural gas infrastructure such as pipelines, import terminals and city gas distribution networks by 2024.
Speaking at the India Energy Forum of CERAWEEK conference in New Delhi, he said India’s energy transition level is in line with global trends.
“Today India is sixth largest economy in the world and third largest energy consumer after US and China. India will be the key driver of global energy demand in coming decades,” he said.
Meanwhile, when asked if the government had given Oil and Natural Gas Corp. (ONGC) nod to sell stake in Hindustan Petroleum Corp. Ltd (HPCL), Pradhan told reporters: “These are market decisions. They are autonomous companies. They are free to take their own decision at appropriate time.”
Pradhan also made a vehement appeal to the finance minister Nirmala Sitharaman for bringing jet fuel and natural gas under the ambit of goods and services tax (GST) to reduce multiplicity of taxes and improve business climate.
“It has been two years since the historic tax reform GST was implemented,” Pradhan said at the event. “There has been continuous demand from the petroleum industry for inclusion of petroleum products under GST regime. I make a strong appeal to (the) finance minister to take this up with the GST Council and at least make a beginning by including natural gas and ATF (aviation turbine fuel) in the GST.” Sitharaman was supposed to attend the conference but could not reach on time to hear Pradhan speak.
“Given the complexity of petroleum sector and the revenue dependence of state governments in this sector, petroleum products have been kept outside the ambit of GST regime,” he said.