Foreign investors may be put off, say experts

Foreign investors may be put off, say experts

Experts here point out that the government interference in the pricing and marketing of gas leads to investment risk in a politically sensitive resources.

For one, while the Supreme Court  verdict gives a clarity on the policy over the ownership of gas-fields and the power to decide prices, this aspect makes the government’s role more predominant but seen as a regressive step backward move by the champions of free market.  

Taxation expert H P Ranina said: “This issue is now not merely confined to the concerned parties or the courts, but will also involve members of parliament, as the government will have to come out with a legislation to ensure that similar disputes do not happen in the future and investors have a clear understanding of what is at stake.”  

Further,  Ranina added: “The next six weeks are going to be crucial as the two companies will have to renegotiate and arrive at a deal.”