Dharmendra Pradhan invites US oil, gas firms to invest in India; eyes this much investment in 5 years

By: |
Published: July 16, 2020 12:07 PM

Dharmendra Pradhan said that India will see an investment of over $118 billion in the oil and gas sector in the next five years.

oil and gas company, US companies, dharmendra pradhan, oil minister Dharmendra Pradhan said that there have been a few collaborative efforts between Indian and American companies in this sector, but it is far below their potential.

Petroleum Minister Dharmendra Pradhan invited the US companies and investors to engage and invest in India, ahead of the second ministerial meeting of India and the US Strategic Energy Partnership scheduled tomorrow. Dharmendra Pradhan said that India will see an investment of over $118 billion in the oil and gas sector in the next five years. He added that India is preparing to meet the needs of a fast-growing economy, hence the country is striving for setting up oil and gas exploration facilities and natural gas infrastructure, including the development of gas supply and distribution networks across the country.

The minister underlined that there have been a few collaborative efforts between Indian and American companies in this sector, but it is far below their potential. He also said that the resilience of the US-India Energy Partnership is one of the most durable pillars on which the bilateral relations of both countries rest. In an interaction organised by the US-India Business Council (USIBC), Dharmendra Pradhan added that even during these challenging times, India and the US have been working in close collaboration, be it in stabilising global energy markets or in collaborative efforts to address the coronavirus pandemic.

Also Read: World Bank sneaks into India’s past; shows parents’ jobs led to income, education divide in rural India

India’s petroleum minister highlighted several upcoming new opportunities in the field of LNG bunkering, LNG ISO container development, petrochemicals, bio-fuels, and Compressed Bio-Gas in the Indian energy sector. He further invited greater participation from the US companies during the next Open Acreage Licensing Programme (OALP) and Discovered Small Fields (DSF) bid rounds.

Meanwhile, in an effort to turn India into a gas-based economy, the cabinet had recently approved the capital grant as viability gap funding to Indradhanush Gas Grid Ltd for setting up the North-East Natural Gas Pipeline Grid. The government had earlier announced the plan to raise the share of natural gas in the country’s primary energy mix to 15 per cent by 2030 from the present level of 6 per cent. The government has been encouraging large-scale investments in gas production, transportation, and import terminals to increase countrywide access to fossil fuel.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India attracts $22 billion FDI during COVID-19: Amitabh Kant
2‘Music to ears for those worried about recovery’: India’s export has grown in July, says Piyush Goyal
3India may need stimulus on demand side as growth begins to pick up: Arvind Panagariya