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Finance Minister Nirmala Sitharaman has assured the investors in the energy space that the government will honour its contractual commitments.
The Minister’s statement at the India Energy Forum by CERAWeek is may sound like music to the ears given the past experience. While companies, like Cairn Energy, are facing challenges in the hydrocarbon space, renewable power developers are facing sudden changes in power purchase agreements in States like Andhra Pradesh . These changes have some overseas investors worried.
Sitharaman also raised the issue of global crude oil prices, and sought views on how India can expand its energy resources mix. She said that India is committed to better energy reformed country, while acknowledging that India energy demand and sector poses lot of challenge. “The government is committed to giving every Indian access to energy,” she said.
The Minister also spelled out the tax reforms undertaken by the government .
‘Bring some fuels under GST’
Speaking to reporters at the sidelines of the session, Minister for Petroleum and Natural Gas Dharmendra Pradhan said, “I have appealed to the Finance Minister to look into the concerns of the industry...At least natural gas and ATF, should come in the ambit of Goods and Services Tax.”
“The aviation industry is moving towards double digit growth, and the centre is coming to boost natural gas through the city gas distribution networks,” he said.
Speaking about India’s energy needs, he said, “No single form of energy can meet the growing energy demand in India given India’s development imperative that aims to ensure energy justice to all. India will chart its own course of energy transition in a responsible manner.”
On investments Pradhan added, “We have successfully completed three bid rounds under Open Acreage Licensing Policy (OALP) and two rounds of bidding under the Discovered Small Fields (DSF) policy. Through these successful biddings, India is expected to garner an estimated investment of $ 58 billion in E&P sector by 2023.”
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