Published: Wed, December 07, 2016
Tech | By Dwayne Harmon

Modi asks Indian energy powerhouses to become MNCs

Inaugurating the Petrotech 2016 Exhibition at Pragati Maidan in New Delhi, Mr Pradhan said, over the years it has made efforts to provide affordable energy throughout the country.

The Minister noted that the domestic demand for gas in the sector of power generation has not been fully met at present, though he expressed optimism that the new partnerships formed with the participating stakeholders at Petrotech-2016 would help us revive Indias stranded Gas based power plants in the near future.

Envisioning the expansion of the transport sector in India, the prime minister said, "India's commercial transport sector has become skewed".

For good measure, the Prime Minister put the spotlight on India's resilience to global headwinds.

The Prime Minister said India's economy is expected to grow five-fold by 2040.

Stating that hydrocarbons will remain the most important source of energy for many years to come, the Prime Minister said India is poised to account for one fourth of the incremental global energy demand between 2013 and 2040. He added that discoveries of better technologies are regularly transforming the sector which offer opportunities for those who are ahead of the curve but also pose challenges to companies who follow conventional approach to this dynamic subject.

After ambivalence of more than eight years, members of the Organisation of Petroleum Exporting Countries (OPEC) last Wednesday pledged to reduce their production by 1.2 million barrels a day beginning January 1. He said emphasis will be also on shale gas and coal bed methane gas exploration besides the conventional methods of oil and gas exploration offshore and onshore. "Sustainable, stable and reasonably priced energy is the main part of any outreach programme to deliver fruits of economic development to the bottom of the pyramid", he said.

This policy also covers open acreage policy, which allows bidders to select the acreage they look to explore; revenue sharing model instead of profit sharing model to reduce any scope for disputes; and marketing and pricing freedom on produced crude oil and natural gas.

Stating that India has become the fastest growing major economy despite per capita energy consumption figures being among the lowest in the world, Pradhan said, "higher oil prices will risk this growth trajectory and deprive the underprivileged sections of society from access to energy". India has taken several initiatives and reforms in upstream, midstream and downstream sectors, he said.

The conclave comes at a time when India has been rejig hung its energy security strategy, in the backdrop of OPEC's production cut decision. "This provides ample opportunities for companies to invest in India across the hydrocarbon value chain".

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