OIL & GAS: Why settle for ‘Sell in India’, when you can ‘Make in India!’
For every barrel of oil produced in India, the government earns more than 50 per cent of revenue through royalty, cess, profit petroleum; not to mention corporate income tax and other state level taxes. On the other hand, for every barrel of oil imported into the country, the government not only gets zero revenue but has to shell out precious foreign exchange that has a direct bearing on the country’s economy. The need of the hour is to boost domestic production through a robust policy and concerted efforts.
India is a country with expansive oil and gas resources, and a huge potential for new explorations. India’s 26 sedimentary basins have a total resource (in place) base of 41,872 million metric tonnes with varying degrees of prospective hydrocarbon potential spread across onshore, offshore and deepwater areas. Given India’s current domestic crude production of 36million tonnes, this itself translates into revenue of billions of dollars for the government, not to mention the energy security it ensures for the country. The irony is that the current domestic oil production barely meets less than 20 per cent of the country’s needs with most of the demand being met through imports. Prime Minister Narendra Modi’s vision to cut imports by 10 per cent by 2022 through increased domestic production will give a double boost to the economy by way of increased revenueshare on domestic production and savings on foreign exchange for imports.
Over the last more than four years, GOI has taken series of policy liberalisation measures in the oil and gas sector. GOI’s focus is to attract investments, usher ease of doing business and promote the principle of ‘Maximum Governance and Minimum Government’. Discovered small fields, policy framework for early monetisation of CBM, Hydrocarbon Exploration and Licensing Policy (HELP), Open Acreage Licensing (OAL), policy to access