“Since the launch of NELP in 1999, investors have spent $ 23 billion on exploration and development alone against the return of $12 billion in 15 years, indicating a shortfall of $11 billion. Unless we correct the risk-reward imbalances, investors will continue to remain reluctant to invest in India.”
Ahead of the next edition of oil and gas blocks auctions, the domestic explorers in a letter to the Secretary, Ministry of Petroleum and Natural Gas, Kapil Dev Tripathi have urged the government to ensure that there is no retrospective changes made in contracts. No fiscal incentives should be offered at the time of awarding the block, the industry stated in the letter.
“What is of utmost importance is that any regime, once adopted, should be honoured in letter and in spirit and its terms should not be modified after signing of contract. Any modifications made in a licensing regime must only be enforced prospectively,” the letter mentioned.
“Since the launch of NELP in 1999, investors have spent $ 23 billion on exploration and development alone against the return of $12 billion in 15 years, indicating a shortfall of $11 billion. Unless we correct the risk-reward imbalances, investors will continue to remain reluctant to invest in India.”
“What is of utmost importance is that any regime, once adopted, should be honoured in letter and in spirit and its terms should not be modified after signing of contract. Any modifications made in a licensing regime must only be enforced prospectively,” the letter mentioned.
“Since the launch of NELP in 1999, investors have spent $ 23 billion on exploration and development alone against the return of $12 billion in 15 years, indicating a shortfall of $11 billion. Unless we correct the risk-reward imbalances, investors will continue to remain reluctant to invest in India.”
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