Union Minister for Petroleum and Natural Gas Dharmendra Pradhan has directed public sector oil and gas companies to monetise stranded energy reserves and discoveries, adding that in case they are incapable of doing so, the government would step in and sell them off.
Speaking at the BNEF summit, the minister stressed that state-run energy majors should enter into joint ventures or develop new business models for monetisation of the stranded assets.
He added that the Centre has created a dynamic business climate in India to attract more investment technology for a secured energy future for India.
Pradhan was of the view that as India is a net importer of oil, public sector companies like OIL and ONGC cannot sit on reserves.
“We have given policy guidance to state-owned companies, either you do on your own through new partners, new business model or after a particular period the government will intervene, and using its authority, it will bid that resource out to the market,” he said.
Regarding the disinvestment of BPCL, he exuded confidence over completing the privatisation during the extended timeline and said: “It is perfectly on track and we will fulfill our strategy at a due time.”