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| The number of FDI approvals dropped to 24 at an investment of Rs 5,899.61 crore in 2001-02, against 41 approvals at an investment of Rs 5,905.25 crore in 1997-98. |
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| The opening up of the petroleum sector and dismantling of the administered pricing mechanism (APM) also did not help in this regard. |
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| During April-December 2002, the first year of decontrol in the petroleum sector, FDI approvals touched a low of 20, entailing an investment of just Rs 258.24 crore. |
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| The main reason for few foreign investment proposals in the exploration sector was the perception that prospects of hydrocarbon in India were low. |
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| This was aggravated by an absence of reliable data on the exploration blocks offered by the country before the new exploration licensing policy was implemented. |
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| During this period, none of the foreign companies that invested in exploration activity here could strike hydrocarbons. |
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| It was only when the country updated its data collection facilities and undertook vigorous seismic surveys that some interest was revived in its exploration sector. |
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| The other factor for the poor flow of foreign investment was the lack of confidence among investors that India would deregulate the oil sector on time. |
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Though the government had announced a phased programme for the dismantling of the administered pricing mechanism in the oil sector and rationalisation of taxes, duties and removal of subsidies during 1998-2002, considering the volatility in international prices and India
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