India’s gas industry policies cause for perpetual frustration

India’s energy sector has suffered a tremendous series of blows this week, as several disputes amongst Ambani brothers, and the subsequent intervention on the nation’s government’s part has provoked extensive amounts of public criticisms.

The country’s government stepped in during a rapidly escalating quarrel between the two brothers, and stated that all and any natural gas issues are to be finalized and resolved by the Indian state since natural gas is registered as an independent national resource, and any price fluctuations that the product endures are to be pre- approved and considered by the government.

These statements, while effective in settling the argument between the brothers has caused a severe drop of popularity and support for the state and the industry from its people. The stringent regulations superimposed on the fuel industry by the government, and its unwillingness to change the strict standards has caused many prospective investors to stay away from the emerging nation and its bountiful natural gas production market.

Several investors have stated that despite the country’s massive potential and future riches; its dubious contract drafting policies, and government- based interest leans make for a rather imbalanced and unfriendly environment for a looking investor. If the companies that actually deliver the product have absolutely no say over their client choices, productivity rates or pricing ranges, the role of the investor hangs in equal suspension, and total dependence upon the nation’s elitist and questionably- motivated state.

The recent takeover plans of Cairn India by Vedanta are one of the latest glaring examples of such inconsistent and unfair policies. The highly profitable and productive company has grown tired of the nation’s overbearing regulation- making philosophies and has decided to sell off its stakes in the country and move on to Greenland and its yet unexplored and unbiased exploration industry.

It is clear that India is in a dire need to rethink its exporter and investor policies, and perhaps edge in a more consumer- friendly and mutually beneficial market. Then, there will be no end to the bright- eyed investors heading for the country’s rich oil and gas reserves.