Modi urges global energy firms to invest in India

Prime Minister Narendra Modi on Monday urged global energy firms to step up investment in India, as its oil consumption is going to be more than the whole of Europe by 2040 that will throw up job opportunities for youth.

“India’s economy is expected to grow five-fold by 2040. As per estimates, India is poised to account for one-fourth of the incremental global energy demand between 2013 and 2040. India is expected to consume more oil in 2040 than the whole of Europe,” the prime minister said while addressing the inaugural session of Petrotech conference here.

Transport infrastructure is also expected to increase manifold, he said. The commercial vehicle population will increase four-fold from the current 1.30 crore by 2040. In civil aviation, India is currently the eighth largest market in the world and set to become the world’s third largest by 2034. “Growth in the aviation sector is expected to raise demand for aviation fuel four times by 2040. All this will affect energy demand,” he said.

He said a new hydrocarbon exploration and production policy has been introduced to provide for uniform licence for exploration and production for all forms of hydrocarbons, including shale oil and gas and coal bed methane. This also covers open acreage policy allowing bidders to choose the acreage they wish to explore, revenue sharing model instead of profit sharing to reduce any scope for disputes and pricing freedom for crude oil and natural gas produced.

“I hope that our oil and gas sector companies will take the opportunity to tie up with their foreign counterparts to explore for more equity oil... Indian energy companies must become multinational and work towards India-Middle East, India-Central Asia, and India-South Asia energy corridors,” he exhorted.

He urged global hydrocarbon companies to come and make in India.

“Our commitment is strong and our motto is to replace Red Tape with Red Carpet,” he said adding, “We must also be sensitive towards the environment.”

“It is something India does out of commitment not out of compulsion,” Modi said.