News Release Details
Fuel retailing norms likely to be relaxed soon
New Delhi 02-Aug-2007
The Government is considering the abolition of the minimum investment requirement of Rs. 2,000 crore for petroleum companies to take up retail marketing of transportation fuels. The minimum limit was fixed to ensure that "only serious players" could have access to the growing Indian transportation fuel market. The issue had figured in the integrated energy policy recommendations for the petroleum and natural gas sector. In various detailed appraisals, Planning Commission is of the view that the regulator can easily ensure that fly-by-night operators do not enter the retail sector even without such an investment hurdle. The Petroleum Ministry is also agreeable to lifting the investment requirement of Rs. 2,000 crore. However, no timeline for removing the floor limit has been decided yet. The issue may be referred to the Energy Coordination Committee (ECC), headed by Prime Minister Manmohan Singh, for a final clearance, government sources told Hindustan Times. The ECC is also expected to take a view on the recommendations of Committee of Secretaries on pricing of gas from deepwater’s in the Krishna-Godavari (KG) basin.
New Delhi 02-Aug-2007
The Government is considering the abolition of the minimum investment requirement of Rs. 2,000 crore for petroleum companies to take up retail marketing of transportation fuels. The minimum limit was fixed to ensure that "only serious players" could have access to the growing Indian transportation fuel market. The issue had figured in the integrated energy policy recommendations for the petroleum and natural gas sector. In various detailed appraisals, Planning Commission is of the view that the regulator can easily ensure that fly-by-night operators do not enter the retail sector even without such an investment hurdle. The Petroleum Ministry is also agreeable to lifting the investment requirement of Rs. 2,000 crore. However, no timeline for removing the floor limit has been decided yet. The issue may be referred to the Energy Coordination Committee (ECC), headed by Prime Minister Manmohan Singh, for a final clearance, government sources told Hindustan Times. The ECC is also expected to take a view on the recommendations of Committee of Secretaries on pricing of gas from deepwater’s in the Krishna-Godavari (KG) basin.