OIL & GAS

Keeping pace with indigenization – impact on Oil & Gas industry

Modi Government’s marquee Make in India and post COVID-19 Atmanirbhar campaign, which aims at self-reliance, are driving businesses to re-look at their operational strategy.

Some key policy changes announced recently are:

1. Mandatory approval of Reserve Bank of India for foreign investments by investors/beneficial owners from countries with whom India shares a land border
2. Mandatory registration with the Competent Authorities of bidders (from countries with whom India shares a land border) participating in contracts with Government entities
3. Revised Public Procurement policy (‘PPP’) dated 4 June 2020 to incentivise Indian value addition/ local content (‘LC’). This PPP appears to permit global tenders by Government entities only for contracts exceeding INR 200 crore (~US$26 million). It also provides for 20% purchase preference margin (‘PP’) based on LC. However, existing PPP dated 25 April 2017 for the Oil & Gas (‘O&G’) sector remains unchanged and continues to apply.
4. Change in eligibility criteria for classification as Medium, Micro and Small Enterprises (‘MSMEs’) and removal of distinction between manufacturing and service enterprises

Source
ET Energy World
Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close