India’s plans to remake itself into a gas-based economy are floundering. As the previous story in this series described, not only is the fuel controlled so tightly by the government that players struggle for viability, India is also running out of cheap domestic gas. The country’s new gas finds – in deepwater fields – and imported gas is too expensive to be viable unless the government steps in with subsidies or taxes rival fuels.India’s Bharatiya Janata Party-led National Democratic Alliance (NDA) government, however, is moving in contradictory directions. On the one hand, it moots the creation of a gas exchange to boost gas trading in India. At the same time, however, it is also wondering if the existing carbon cess on coal should be waived.Along the way, as the government delays structural reforms – while taking more expedient decisions – India’s gas sector is creating a new set of poorly understood risks for the country.
India’s plans to remake itself into a gas-based economy are floundering. As the previous story in this series described, not only is the fuel controlled so tightly by the government that players struggle for viability, India is also running out of cheap domestic gas. The country’s new gas finds – in deepwater fields – and imported gas is too expensive to be viable unless the government steps in with subsidies or taxes rival fuels.
India’s Bharatiya Janata Party-led National Democratic Alliance (NDA) government, however, is moving in contradictory directions. On the one hand, it moots the creation of a gas exchange to boost gas trading in India. At the same time, however, it is also wondering if the existing carbon cess on coal should be waived.
Along the way, as the government delays structural reforms – while taking more expedient decisions – India’s gas sector is creating a new set of poorly understood risks for the country.
m rajshekhar
Fill in your details below or click an icon to log in:
You are commenting using your WordPress.com account. ( Log Out / Change )
You are commenting using your Twitter account. ( Log Out / Change )
You are commenting using your Facebook account. ( Log Out / Change )
Connecting to %s
Notify me of new comments via email.
Notify me of new posts via email.
Δ
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Leave a Reply