Price Reforms In Oil Sector On The Anvil

Opening the fifth International Energy Conference here yesterday, Gowda said India is on the forefront of reforms in the oil and gas sector.

A new exploration licensing policy is on the anvil to rationalise levies and ensure a level playing field among private and national oil companies.

This is the first time that the Prime Minister had spoken on proposed price reforms in the oil sector, which he said were imperative to get an additional investment of $ 100 billion until 2010.

To attract funds, several institutional innovations and economic incentives are being planned. Attempts are being made to achieve greater efficiency of capital use through restructuring and divestment of public enterprises.

 

The Prime Minister urged greater cooperation among oil producing and developing countries, saying stability of energy prices is an area of shared concern among producers and consumers.

He said there was a certain inevitability in their coming together, in view of the large benefits that could be gained through such cooperation.

Minister of state for petroleum and natural gas T R Ballu sought involvement of private Indian and foreign companies in bridging the demand-supply gap of petroleum products in the country.

"We are open to innovative alliances between the private sector and our national oil companies for mutual gains."

Grete Faremo, Norway's energy minister, struck a note of caution when

she said that though energy was a key factor in global economic development, increased energy use was also closely related to hazardous environmental consequences.

The challenge, therefore, was to reconcile in a sustainable manner the need for economic growth and environmental concerns.

The Norway minister regretted that while there was a world food organisation, a trade organisation and a health organisation, there was no global energy organisation. "And there is not even a reminiscence of a global energy policy."