Deloitte takes a hard look at 'Make in India'

Vol 19, PW 18 (19 May 16) Exploration & Production
     

Talking about a 'Make in India' policy is all very well but if the Narendra Modi government is serious then it must consider policy changes including tax breaks and subsidies.

This is what consultant Deloitte Touche Tohmatsu is likely to recommend in a draft report which it plans to submit to the oil ministry by end-May and a final report which it will submit in June on how the domestic oil industry can live up to Modi's vision. Deloitte held closed-door working sessions last month for the downstream, midstream and upstream sectors.

A source at the upstream session says: "India isn't the best place for importing or exporting equipment or manufacturing or safeguarding intellectual property rights. These issues must be addressed.

Oil and gas is not like any other sector." Another source adds India should emulate Singapore. "You can import equipment into Singapore in two days," he says.

"That's why many of us have our regional headquarters there. In India it takes two to 10 weeks because clearances depend on the whims of the DGH." Another source says India should encourage its upstream sector.

"There's hardly any demand," he says. "Cairn and Reliance are investing almost nothing because of regressive policies, the market is monopolised by ONGC.

To attract major oil and gas vendors, India should assure them of steady business, not just from ONGC."