Shri Ram Naik,
Minister of Petroleum & Natural Gas, informed the Lok Sahba
while replying to a question that as many as 166 proposals have
been approved in Petroleum Sector with an estimated Foreign
Direct Investment (FDI) of Rs. 23,413.63 crore during the Ninth
Five Year Plan (1997-2002). As far as the exploration is concerned,
the total FDI made so far is about Rs. 11,400 crore during the
period. The Minister further said that with a view to attract
more FDI into various areas of Petroleum Sector, the Government
has been liberalising the sector on an ongoing basis.
Shri Naik informed
the House that several important measures have been taken by
the Government in this regard.
- Under the New Exploration
Licensing Policy (NELP) and the Coal Bed Methane (CBM) Policy,
FDI upto 100% has been allowed through international competitive
bidding.
- In petroleum refining sector,
in the case of private Indian companies, FDI is permitted
upto 100%. In the case of Public Sector Undertakings (PSUs),
upto 26% FDI is allowed with PSU holding at 26% and public
holding at 48%.
- For petroleum product pipeline
sector, FDI is permitted upto 51%.
- FDI is permitted upto 74%
in infrastructure related to marketing and marketing of
petroleum products.
- 100% Wholly owned Subsidiary
(WOS) is permitted for the purpose of market study and formulation.
- 100% WOS is permitted for
investment/financing.
- For actual trading and marketing,
minimum 26% Indian equity is required over 5 years.
While replying
to supplementary questions, Shri Naik assured the House that
the Government has prepared contingency plans to maintain supplies
of oil in the event of any war in the Gulf. He stressed that
there would be no disruption of supplies of petroleum products
in the country.
