This paper highlights the importance of India’s energy security and the possible repercussions of Government’s policy paralysis, which is hurting the endeavors of energy firms.
India’s energy security is not attributed and confined to just oil & gas industry, whose role cannot be denied in India’s overall growth story. The Government has indeed taken steps in the right direction but now it has become critical for India to introduce policy reforms to secure India’s growing energy needs. Starting from making the present Production Sharing Contract (PSC) structure more remunerative for the investors, to rationalizing the taxation regime for the sector, changes are indispensable. The biggest hurdle currently is the sector’s slow decision-making process. The dwindling interest of foreign investors and their exodus are big concerns, especially at a time when India needs them and the technology they possess. Not to forget, the reforms that India needs in the downstream and midstream sectors and the coordination among various Ministries.