The oil & gas sector has attracted foreign direct investments worth $ 1.18 billion in the past two financial years between April 2014 and March 2016, the government said in its “achievement report” for the petroleum sector.
The report also talks about a slew of measures taken by the Modi government in the sector including de-regulating diesel, unveiling the new Hydrocarbon and Exploration Licensing Policy (HELP) and setting up the mega Paradip refinery apart from the success of the Pradhan Mantri Ujjwala Yojana, and PAHAL, a direct benefit transfer scheme for LPG subsidy. For infrastructure creation in the hydrocarbon space, the government set up the mega 15 million tonne Paradip refinery and has been working towards building strategic crude oil reserves at three locations across the country. India has already commissioned a 1.33 million tonne strategic reserve at Visakhapatnam and is at different stages of setting up additional reserves at Mangalore (1.5 MT) and Padur (2.5 MT). To reduce oil imports by 10 per cent through 2022, the government announced HELP in March 2016 which is expected to help the ‘Ease of Doing Business’ initiative and also incentivise investments.
The new policy includes changes like single licensing policy, revenue-sharing model as opposed to profit-sharing model under the previous policy and marketing and pricing freedom to sell gas produced from geologically difficult areas with a ceiling price. In 2016, the Centre conducted small field auctions under its Discovered Small Field (Marginal Field) Policy. The auction attracted 134 e-bids for 34 contract areas offered by the Directorate General of Hydrocarbons