Modi victory and continuity in Gujarat
Oil companies in Gujarat heaved a sigh of relief last month when the Narendra Modi-led government returned to power after a landslide victory in state elections.
On December 23 it emerged Modi’s BJP party won 117 seats in the state legislature while the opposition Congress party won 59. Barring major change, the Modi-led government will hold power for another five years.
He’s already been chief minister for the past six years but the BJP has ruled Gujarat since 1995. Modi’s re-election came despite a high-profile campaign by human rights groups over his alleged complicity in an anti-Muslim pogrom in 2002.
The BJP’s return will mean continuity in policies for companies like Reliance, Essar, Adani Energy, BG-subsidiary Gujarat Gas, Niko Resources, Shell, Petronet-LNG and GSPC, all of which have significant activity in the state. Gujarat is an oil rich state and home to India’s two LNG terminals – one owned by Petronet-LNG at Dahej and the other by Shell and Total at Hazira.