Indian Budget 2016-17: Government to give calibrated marketing freedom to incentivise oil, gas production

 

India will incentivise oil and gas discovery and exploration of gas in difficult areas by giving them calibrated marketing freedom, the finance minister said in his budget speech.

Calling the move a major reform measure, Arun Jaitley told parliament that the move was a part of India’s drive towards energy self-sufficiency.

The government is considering to incentivise gas production from deep-water, ultra deep-water and high pressure-high temperature areas, which are presently not exploited on account of higher cost and higher risks, he said, adding that the government was also drawing-up a comprehensive plan, spanning next 15 to 20 years, to augment the investment in nuclear power generation.

Budgetary allocation up to Rs 3,000 crore per annum, together with public sector investments, will be leveraged to facilitate the required investment for this purpose.

India, a growing consumer of oil and gas, needs to imports most of its needs as domestic production hasnt taken off to the extent governments would want to.

 

 

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