India’s energy sector attracts foreign investors

Speaking at the Bloomberg NEF, Shri Dharmendra Pradhan, the Minister of Petroleum, Natural Gas and Steel stated that the projected growth of India’s energy sector will attract significant funding from foreign investors

August 2, 2019

Projected economic growth of more than 7 per cent is expected to attract strong foreign funding

Several policy reforms undertaken to revitalise the E&P ecosystem as a business environment

A national scheme has provided over 75 million LPG connections, ensuring access to clean fuel

India is aiming for 40% electricity generation capacity from non-fossil fuel resources by 2030

Minister of Petroleum, Natural Gas and Steel, Shri Dharmendra Pradhan, has said that India’s projected economic growth has created a suitable environment for increased foreign funding in the energy sector. Speaking at the Bloomberg NEF on August 2, Mr Pradhan said that the economy is set to experience growth of more than 7 per cent which will boost confidence among foriegn investors. He added that many companies have successfully raised funding through overseas bond market and this funding route will likely grow manifold going forward. India, the world’s third-largest oil consumer, is seeing steady growth in demand and will need increased investment to boost capacity. 

Mr Pradhan said that the government is focusing more on the petroleum industry’s upstream sector, with several transformative policy reforms being undertaken to bolster investment in India’s exploration and production (E&P) capabilities. These policies will succeed in not only revitalising the E&P ecosystem but also creating a conducive environment for business, which can increase investment into domestic oil & gas production. A bright spot in the global economy, India’s Government is committed towards achieving holistic, inclusive, and sustainable economic development. En route to becoming a US$3 trillion economy before 2020, India must look ahead to its next milestone. 

Over the past years, India has seen rising number of deals spanning the upstream to the downstream energy spaces. In order to maintain this growth, and provide energy access to a growing population of over 1.3 billion people, the country is prioritising on providing affordable and sustainable clean energy. The Government’s commitment to clean energy expands beyond electricity through the Pradhan Mantri Ujjwala Yojana programme, which has provided more than 75 million LPG connections in poor households. Meanwhile, the Government aims to achieve 40 per cent electricity generation capacity from non-fossil fuel-based energy resources by 2030.