Globalization and the Indian Petroleum Industry
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Globalization and the Indian Petroleum Industry go hand in hand since Globalization of the Indian Petroleum Industry started soon after the independence of the country.
The Indian Petroleum Industry was dependent from the very beginning on foreign capital, expert personnel, and technology, which led to the industry's globalization. Globalization entails the integration of the nations' economies through corporate investments, financial flow, and trade in goods and services between nations. Globalization also means the dismantling of trade barriers between nations and it has increased in the last few years due to the massive progress that has been made in the area of technology, especially in transport and communications. The Indian Petroleum Industry's Globalization took place since foreign involvement in the various important stages such as production, refining, exploration, and transportation increased over the years. In order to further encourage the Globalization of the Indian Petroleum Industry, the government of India took certain measures in the early 1990s when the country opened its markets to foreign investments.
The various measures taken by the government to encourage Globalization and the Indian Petroleum Industry are converting the legal status of the Oil and Natural Gas Commission to a corporation. In order to encourage the involvement of the private sector in production and exploration, the government set up the Directorate General of Hydrocarbon. The government in an effort to encourage Indian Petroleum Industry's Globalization has offered the contract of discovered fields to foreign and private companies. The various companies that have helped in the Globalization of the Indian Petroleum Industry are Enron Oil and Gas Company, Videocon Petroleum Ltd, Reliance Industries Ltd., Ravva Oil Ltd., and Command Petroleum.
The Indian government in an attempt to further boost the Globalization of the Indian Petroleum Industry formed the Exploration Licensing Policy by which it tried to attract the foreign and Indian companies to production and exploration. The incentives that were declared by the government to encourage Globalization and the Indian Petroleum Industry are that on imports that were required for petroleum operations custom duty would not have to be paid, state participation is not compulsory, no tax on the production of crude oil, provisions for liberal depreciation, tax holidays for 7 years from the day that production starts, and the freedom to sell natural gas and crude oil in the domestic market at prices that are related to the market.
Globalization and the Indian Petroleum Industry has been going together as has been seen for the past many years. The government of India has taken several measures in order to ensure that the Globalization of the Indian Petroleum Industry is successful for the industry. In the future, the government is likely to ensure that Indian Petroleum Industry's Globalization is beneficial for the industry and not harmful.
Last updated on 3/18/2011
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The various measures taken by the government to encourage Globalization and the Indian Petroleum Industry are converting the legal status of the Oil and Natural Gas Commission to a corporation. In order to encourage the involvement of the private sector in production and exploration, the government set up the Directorate General of Hydrocarbon. The government in an effort to encourage Indian Petroleum Industry's Globalization has offered the contract of discovered fields to foreign and private companies. The various companies that have helped in the Globalization of the Indian Petroleum Industry are Enron Oil and Gas Company, Videocon Petroleum Ltd, Reliance Industries Ltd., Ravva Oil Ltd., and Command Petroleum.
The Indian government in an attempt to further boost the Globalization of the Indian Petroleum Industry formed the Exploration Licensing Policy by which it tried to attract the foreign and Indian companies to production and exploration. The incentives that were declared by the government to encourage Globalization and the Indian Petroleum Industry are that on imports that were required for petroleum operations custom duty would not have to be paid, state participation is not compulsory, no tax on the production of crude oil, provisions for liberal depreciation, tax holidays for 7 years from the day that production starts, and the freedom to sell natural gas and crude oil in the domestic market at prices that are related to the market.
Globalization and the Indian Petroleum Industry has been going together as has been seen for the past many years. The government of India has taken several measures in order to ensure that the Globalization of the Indian Petroleum Industry is successful for the industry. In the future, the government is likely to ensure that Indian Petroleum Industry's Globalization is beneficial for the industry and not harmful.
Last updated on 3/18/2011
