The oil and gas sector is among the six core industries in India and plays a major role in influencing decision making for all the other important sections of the economy.
India’s economic growth is closely related to energy demand; therefore the need for oil and gas is projected to grow more, thereby making the sector quite conducive for investment.
The Government of India has adopted several policies to fulfil the increasing demand.
The government has allowed 100 per cent Foreign Direct Investment (FDI) in many segments of the sector, including natural gas, petroleum products, and refineries, among others.
The present policy specifies different FDI routes and % of FDI Equity of different activities of this sector.
|% of FDI Cap/Equity||Entry Route|
|Petroleum refining by the Public Sector Undertaking (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs.||49%||Automatic|
Regulations in Petroleum & Natural Gas Sector
- Oil Field (Regulation and Development) Act, 1948 and Petroleum and Natural Gas Rules 1959.
- New Exploration Licensing Policy(NELP).
- Coal Bed Methane(CBM) Policy.
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