 "Panel on manufacturing in petroleum sector to work out incentives for industry")
The committee, headed by the ministry’s additional secretary, Rajive Kumar, “will assess reasons for relatively lower levels of investment in the manufacturing sector in the oil and gas industry, compulsions for imports and market potential for fabricated materials”, the ministry said in its communication to the panel members, including representatives from the commerce ministry, oil public sector undertakings and private industry.
The committee will review the current status of infrastructure, related policies, skills and raw material requirement apart from steps taken by other countries to promote local manufacturing. “It will identify incentives required, if any, to attract manufacturing companies to India, streamline regulatory requirements for setting up manufacturing business in India,” the ministry said.
The committee has been allowed to consult “whoever they may require” and submit its final report within four months. The move comes a month after the ministry abolished a three decade policy to provide a 10 per cent price preference to domestic firms over foreign companies in bidding for equipment and service contracts invited by oil companies arguing the policy was no more needed as domestic firms should be able to compete with their foreign peers.