In partnership with Japan, South Korea and Singapore, India must explore options for joint storage of oil reserves and setting up a financial reserve for borrowing and lending to tide over the volatility of oil prices, according to HS Puri, secretary (ER) in the Ministry of External Affairs (MEA).
The MEA’s energy security division, set up in 2007, would channelise India’s efforts to strengthen its energy security in the absence of a dedicated ministry that handles this critical aspect of national security, Puri said at a CII seminar today.
The current phase of low oil prices should be leveraged to strengthen India’s strategic petroleum reserve, he added.
Puri said it was time for public-private partnerships (PPP) to secure India’s energy security and the government intended to support initiatives such as think tanks devoted to research India’s energy needs and security.
Planning Commission member Kirit Parikh said public sector undertakings (PSUs) such as ONGC Videsh Ltd were slow off the block at times to bid for overseas projects. Hence, in order to increase efficiency and a greater success rate to secure projects and assets, it would be beneficial if the government allowed the private sector to collaborate along with the PSUs. This would also infuse additional capital to strengthen India’s energy security polices, he added.
While India is mulling collaborative efforts with Japan, South Korea and Singapore, it is still wary of involving itself in such initiatives with China.
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When asked about the Chinese Ambassador to India Zhang Yan’s statement last week that China and India should increase their collaboration for joint investments in Africa, West Asia and South America, Puri said: “India wants to pursue collaborations with all countries,” but refused to comment on Zhang’s observations.
More often than not, India and China have been on the opposite side of the fence in securing energy assets. China has been successful in outmaneuvering India on many occasions while bidding for projects in Africa, which is rich in natural resources.