Budget expectations: Natural gas sector

27 Jan 2022 , 08:33 PM

“The Union Budget 2022 is expected to provide the much needed boost to growth and recovery of the economy. With the Natural gas sector looking to be a major component in India’s energy economy and growth, the Government should have a strong focus to promote the domestic Natural Gas producers, which as a sector has seen limited progress.

GST has been a game changer for various sectors and one of the major and long standing demands of the Natural Gas sector is the inclusion of this sector in the GST gambit. Similarly the Govt. of India has announced a system of Production Linked Incentive (PLI) Schemes across 13 key sectors, including Renewables. The Natural Gas producers are committed to the cause of maximizing gas production in line with the vision of a National Gas based economy. Therefore, Natural Gas producers should also be included as a part of this incentive scheme, which will give them the required boost.

Decarbonizing the energy sector in India is also another aspect which is set to grow significantly in view of the COP 26 declaration of a 2070 timeframe. As energy transition processes are implemented by hydrocarbon producers, a comprehensive carbon trading policy and platform is very crucial, which will leapfrog the transition”

The author of this article is Mr. Pankaj Kalra, CEO, Essar Exploration and Production Limited

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com