As one of the most populous nations on earth, India has the opportunity to be at the centre of global growth and demand over the next 30 years, but it needs a coordinated approach in order to truly benefit.
This article outlines some of the plans that are being considered;
India plans to form a giant national oil company by combining other state-owned firms, finance minister Arun Jaitley said on Wednesday, as New Delhi wants to expand its foreign presence to meet growing domestic fuel demand.
The problem is that India has a number of separate state-owned companies but individually, they do not have the necessary market capital that allows borrowing of the sums of money necessary for mega-investments.
India has about a dozen state-run oil and gas companies – including Indian Oil Corp, Oil and Natural Gas Corp , Hindustan Petroleum Corp and others – but alone they do not have the financial power to rival global oil majors in bids for overseas exploration and production assets.
Combining them “will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for shareholders,”
The potential for India, Indian companies and Western contractors/ suppliers/ engineers is massive. I hope it succeeds.