The government is planning disinvestment of its equity in the Gas Authority of India (GAIL). The move follows the recent recommendation of the disinvestment commission headed by planning commission member, G V Ramakrishna.
Minister of state for petroleum and natural gas, T R Baalu, said here yesterday that the step was in line with the disinvestments in a number of profit-making public sector undertakings like Hindustan Petroleum Corporation (HPCL), Madras Refineries (MRL), IBP and Cochin Refineries (CRL). "Further disinvestment and dilution of government holding is planned in IOC, ONGC and GAIL," he added.
The minister was addressing the opening session of the two-day UK oil and gas seminar.
He declared natural gas as one of the thrust areas for investment and called upon British companies to invest heavily in this sector.
Nearly $8 billion investment in pipelines, ports and other infrastructural areas is required, he added.
While the country's natural gas demand is 260 million cubic metres only around 60 million cubic metres was available, he added.
"A plan is being introduced to import LNG and two terminals have already been cleared, one on the east coast and the other on the west coast," he explained.
The minister outlined the various areas for investment in the oil and gas sector.
He cited opportunities in petroleum refining, liquefied petroleum gas (LPG) and kerosene marketing, oil storage and terminal facilities, pipeline transportation, port infrastructure and development facilities and other areas.
"The present refining capacity in the country is of the order of 60.4 million tonnes, and is likely to increase to 130 million tonnes in the next six years," the minister said.
