Panel on manufacturing in petroleum sector to work out incentives for industry

The move is part of the "Make in India" campaign, launched by Prime Minister Narendra Modi

The petroleum ministry on Wednesday said its committee on boosting local manufacturing in the oil and gas sector will work out suitable incentives for the industry, after identifying reasons for low investment levels. The move is a part of the “Make in India” campaign launched by Prime Minister Narendra Modi.

The committee, headed by the ministry’s additional secretary, Rajive Kumar, “will assess reasons for relatively lower levels of investment in the manufacturing sector in the oil and gas industry, compulsions for imports and market potential for fabricated materials”, the ministry said in its communication to the panel members, including representatives from the commerce ministry, oil public sector undertakings  and private industry.

The committee will review the current status of infrastructure, related policies, skills and raw material requirement apart from steps taken by other countries to promote local manufacturing. “It will identify incentives required, if any, to attract manufacturing companies to India, streamline regulatory requirements for setting up manufacturing business in India,” the ministry said.

The committee has been allowed to consult “whoever they may require” and submit its final report within four months. The move comes a month after the ministry abolished a three decade policy to provide a 10 per cent price preference to domestic firms over foreign companies in bidding for equipment and service contracts invited by oil companies arguing the policy was no more needed as domestic firms should be able to compete with their foreign peers.