Why Must Cor­po­rates & Govt have ac­ri­mo­nious re­la­tions?

FOR WEALTH CRE­ATION, PRI­VATE & PUB­LIC IN­VEST­MENTS ARE EQUALLY RE­SPON­SI­BLE. PRI­VATE IN­VEST­MENT HAS A BIG ROLE IN EN­ERGY SE­CU­RITY. RE­LA­TION­SHIP IS BET­TER WHEN IT’S BASED ON POLI­CIES, DIS­CRE­TION IS RE­DUCED, DE­CI­SION MAK­ING IN ISO­LA­TION IS ENDED

Resource Digest - - RESOURCE DIGEST -

The pri­vate sec­tor has a ma­jor role in In­dia's en­ergy se­cu­rity and there is no rea­son for any bit­ter­ness be­tween the gov­ern­ment and en­ergy com­pa­nies, oil min­is­ter Dhar­men­dra Prad­han says. This should cheer the cor­po­rate sec­tor as Reliance In­dus­tries and Cairn In­dia, which made In­dia's big­gest hy­dro­car­bon dis­cov­er­ies in decades, have had bit­ter dis­putes with the oil min­istry. In an in­ter­view, Prad­han also said ONGC needs se­ri­ous hand­hold­ing for a facelift and talked about plans to rapidly in­dus­tri­alise east­ern In­dia with the help of gas sup­ply. Edited ex­cerpts:

WHAT WILL BE THE POL­ICY INI­TIA­TIVES IN THE SEC­OND HALF OF YOUR TEN­URE. HOW DO YOU PLAN TO IM­PLE­MENT MA­JOR POLI­CIES LAUNCHED SO FAR?

In the past two-and-a-half years, we brought in sev­eral re­forms that helped bring cer­tainty, trans­parency, and clar­ity in pol­icy. Some have al­ready been im­ple­mented. We dereg­u­lated the mar­ket (diesel sales), which had an im­me­di­ate im­pact. We im­ple­mented Di­rect Ben­e­fit Trans­fer. We also saved money due to lower oil prices, which we also quickly started re­dis­tribut­ing through Ujjwala scheme. We have given a bud­getary grant of . 5,000 crore for gas pipe­line this year.` There­fore, some re­forms started show­ing im­me­di­ate im­pact. Some other re­forms would have an im­pact in the medium and long term. By bring­ing in as­sured price mech­a­nism, the pro­cure­ment of ethanol has in­creased. In the next two and a half years, our pri­mary pri­or­ity would be to im­ple­ment all tar­gets that we have set, all pol­icy re­forms that we have un­der­taken so far. We got a legacy of a com­plete mess in en­ergy.

GLOBAL OIL PRICES HAVE CRASHED, WHILE THE IN­DIAN ECON­OMY AND OIL DE­MAND IS GROW­ING FAST. HOW HAS THIS CHANGED OUR EQUA­TION WITH THE WORLD?

I don't be­lieve in the the­ory of price crash. Prices ac­tu­ally got rea­son­able. No one knew why it was so high. And in In­dia, as things started im­prov­ing, it be­came the No. 3 con­sum­ing coun­try from No. 4. We have set a tar­get of 175 GW of re­new­able en­ergy. Has any coun­try done this? We did it. On the whole, for the so­cio-eco­nomic trans­for­ma­tion of the coun­try, the prime min­is­ter's phi­los­o­phy of

if there is any sec­tor that has dealt with it on a war foot­ing, it is the en­ergy sec­tor.

LE­GAL CASES WITH RELIANCE AND CAIRN ARE ON WAY TO GET­TING RE­SOLVED. HAVE WE PUT BE­HIND THE AC­RI­MO­NIOUS RE­LA­TION­SHIP BE­TWEEN GOV­ERN­MENT AND COM­PA­NIES?

Why should there be an ac­ri­mo­nious re­la­tion­ship be­tween cor­po­rate and gov­ern­ment? They are equal part­ners of this growth story. For wealth cre­ation, pri­vate in­vest­ment and pub­lic in­vest­ment are equally re­spon­si­ble. In In­dia, pri­vate in­vest­ment has a big role for en­ergy se­cu­rity. The re­la­tion­ship is bet­ter when it is based on poli­cies, when dis­cre­tion is re­duced and de­ci­sion mak­ing in iso­la­tion is ended.

WHAT'S THE FEED­BACK FROM IN­TER­NA­TIONAL FIRMS SUCH AS ROS­NEFT, EXXON?

In the re­cent past, the big­gest en­ergy deal in the world -of about $18 bil­lion-was signed be­tween In­dia and Ros­neft. We have in­vested $5.5 bil­ion in Rus­sia, and they have in­vested about $13 bil­lion in In­dia .

SOME AN­A­LYSTS ARE SAY­ING THAT BY IN­VEST­ING SO MUCH IN RUS­SIA, WE ARE RISK­ING OUR­SELVES, AND WE MUST LOOK FOR GOOD AS­SETS OUT­SIDE RUS­SIA?

DHAR­MEN­DRA PRAD­HAN, OIL MIN­IS­TER

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.