After Oil Companies’ Privatisation, Center Inviting Foreign Companies to Participate

- BY Jaspreet Kaur
Feature Writer, BusinessEx
- |
- Nov 12,2019
- |
9 Mins Read
Center has recently begun inviting international energy firms to partake in India’s privatization of state-run oil firms.
“International energy firms will be invited to participate in India’s privatization of state-owned oil companies,” the Oil Minister of India, Dharmendra Pradhan said in an interview with Reuters.
“Indian Prime Minister Narendra Modi recently met with the chief executives of energy firms in Houston, including those from Exxon Mobil Corp, BP Plc, Royal Dutch Shell, Rosneft Oil Co, Saudi Aramco and Abu Dhabi National Oil Co (Adnoc),” Pradhan further said.
With his statements, the Oil Minister has alluded to the Indian government’s intention to bring foreign investment into the country’s state-run oil firms.
In a conference in Abu Dhabi, Dharmendra Pradhan told the reporters, “ We are inviting oil majors (major companies).”
“They are all towards India’s energy market,” Pradhan said.
Asked if the response was positive, he said, “I am very enthusiastic.”
“A planned oil refinery on India’s west coast in partnership with Aramco and Adnoc is on the right track. There will be more clarity once the new government is formed in the state of Maharastra, where the project is planned, which is deadlocked after the recent elections,” Pradhan said in an interview with Reuters.
At interrogating if a deal can be sealed with Adnoc and Aramco, Pradhan said, “I think so,” refusing to give a timeline.
India is also open to crude oil imports from Russia, Pradhan said. “We are open to source our requirements from all over the world whoever gives us a responsible and reasonable price. Russia is a very important partner for us.”
Recently, the chairman of Indian Oil Corp said, “the company was looking at buying Russian oil.”
With this move, the Indian government will allow foreign companies to enter the Indian petroleum industry. Earlier this year, FDI policy amended to increase investment, as well as the participation of foreign players, in the economy. By switching to privatization mode in state-run oil companies, this move alludes to another way to boost the Indian economy.
Recently, two oil firms, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) are being hammered this fiscal year along with state-run, Oil and Natural Gas Corporation Limited (ONGC), are planning to sell its shares after making an expensive bet to acquire HPCL, The Economic Times reported.
More from Jaspreet Kaur
5 C’s Entrepreneur must be aware...
Getting a Loan is a difficult task so one must be prepare...
July 11, 20173 Min Read
What incubator provides startup...
Startups need incubators for their overall development...
January 10, 20183 Min Read
When Is Debt Better Than Investment?
An entrepreneur must consider lending as an option...
January 17, 20183 Min Read
8 Food Business Ideas Pick Up Steam...
Seeking business opportunity in the food industry then...
January 18, 20183 Min Read
How to maintain a good business...
A good relation between mentor and entrepreneur builds...
January 20, 20183 Min Read
How online networking helps small...
A one stop solution for all business related problem...
January 22, 20183 Min Read
Why invest in the leisure and entertainment...
Investing in the leisure and entertainment industry...
January 23, 20183 Min Read
Why you should invest in a startup?
Investing in a startup is the fastest way to get a...
January 24, 20183 Min Read
When is the right time to exit...
Starting a business is not a child's play so it is...
January 29, 20183 Min Read
5 things good mentors do differently
An entrepreneur seeks the support of a mentor in the...
February 05, 20183 Min Read
7 reasons why buying a business...
Buying an established business means that you are one...
February 06, 20183 Min Read
Social Media for Brand Promotion
Small businesses are building up their own brand name...
February 09, 20183 Min Read
Recommended for you
- September 30, 2021
- September 17, 2021
- September 10, 2021
Latest News & Articles
- July 11, 2017
- January 10, 2018
- January 17, 2018