Oil and gas industry is among the core industries in India and contributes close to 15-16 percent to India’s total gross domestic product (GDP). In our series – Election and Market – SC Tripathi, former oil secretary and RS Sharma, former chairman of Oil and Natural Gas Corp (ONGC) discussed how oil and gas sector has fared under the National Democratic Party (NDA) rule and the ONGC-HPCL deal.
Talking about the government’s efforts to boost the oil and gas space, Tripathi said, “The government has done well in the short-term aided by the global economic factors.” “Government was able to reduce the inflation, manage rupee, current account deficit, fiscal deficit and therefore emboldened to come up with price deregulation although the previous government had started moving in that direction but the situation became so easy that this government was able to do that,” he added. On the ONGC-HPCL, Sharma said, “The reason for ONGC acquiring Hindustan Petroleum Corporation (HPCL) was for increasing synergies. ONGC-HPCL deal is positive for both the companies.”Share This