There has been much uncertainty around the world but there are clear signs
of progress in certain markets. Investment in frontend work in many regions
of the Middle East has grown substantially, and the outlook for Front End Engineering Design (FEED) and Project Management Consultant (PMC)
contractors has improved dramatically. Similarly, the US has received an unexpected
boost from shale gas with new petrochemical investments suddenly becoming viable.
By comparison, India is still at risk of faltering. Compared to many other economies,
India should be more balanced & stable, and hence attractive for investments,
with growth potential to match. I believe, it is in the hands of the country
to make this potential a reality.
– Alywn Bowden, President & CEO, Essar Projects India Ltd
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As per the foreign direct investment (FDI) fact sheet published by the Department
of Industrial Policy & Promotion, the petroleum and natural gas sector has
received FDI worth Rs 1,297 crore in the financial year 2009-10, which almost
doubled to Rs 2,543 crore in 2010- 11. However, the trend shows significant reduction
in FDI during the financial year 2011-12 with Rs 951 crore invested from April
to January in this sector. This could be a result of global uncertainty. Given the FDI numbers from April 2000 to
January 2012, the petroleum and natural gas sector at Rs 14,612 crore has attracted
only 2 per cent of total FDI inflows in the country. owever, EPC sector in India
has taken certain important steps on their own, which will help the sector grow.
– Savan Godiawala, Senior Director, Deloitte India
As such the global uncertainty is not affecting investment plans in chemical
sector in India mainly because our economy is more or less driven by internal
consumption requirements. However, high interest rates, poor FDI and absence
of major reforms are affecting the desired growth of the sector. It is imperative
to have immediate price de-controlling of petroleum products and uniform taxation
across the country. Besides, issues like inflation and interest rate control
and policy of land acquisition as well as environment clearance should be addressed
on priority basis. However, planned capacity additions by major oil marketing
companies across the board for refineries in the next five years, pet-coke and coal gasificationrelated
projects, capacity addition for fertiliser sector augur well for the sector.
– GR Singh, Vice President, BD, Sales & Execution, Linde Engineering India Pvt Ltd
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EDITORIAL TAKE |
