India must recognise its strength as a buyer of oil and become a price maker and not a price taker, according to P Elango, Managing Director, Hindustan Oil Exploration Company Ltd.

Unexplored basins

The country needs to transform into a gas-based economy, he said, adding that “we need a ‘Drill in India’ campaign under the umbrella of ‘Make in India’ as two thirds of India’s sedimentary basins are unexplored”.

Elango was speaking at the 16th Energy Summit of Indian oil and gas sector on the theme ‘Towards (a) favourable investment regime’. Mrinal Vohra, Managing Director, Quippo Oil and Gas Infrastructure, called for a friendly policy regime for people to invest in exploration and production (E&P) activity in the domestic market.

“Investments in oil and gas E&P are capital intensive and, therefore, there is long-term requirement for paybacks. We need to categorise this as infrastructure sector so that there is long-term access to capital. Requirements for re-exports of capital assets also need to be amended,” Vohra said.

For development of city gas distribution (CGD), only transparent bidding is acceptable for regulator as the board fixes only transportation tariff and not the final price, said S Krishnan, Chairperson, Petroleum and Natural Gas Regulatory Board.  

Bigger role

A longer-term vision keeping in view environmental concerns, desire to graduate to a low carbon economy and volatility of oil in geopolitical context, indicates an increasing role for natural gas, till renewable and nuclear power start playing a significant role, he added.

TNR Rao, Former Petroleum Secretary and Chairman, SAGE, said: “Energy, its price and its efficiency are critical for the success of Make in India campaign.” 

Related Topics
comment COMMENT NOW