OilMin against making commitments in oil, gas marketing
Petroleum Ministry has opposed making any commitments in the area of oil and gas marketing by foreign companies as part of India's response in the services negotiations of the World Trade Organisation.
By PTI |
NEW DELHI: Petroleum Ministry has opposed making any commitments in the area of oil and gas marketing by foreign companies as part of India's response in the services negotiations of the World Trade Organisation.
The ministry has also suggested that if and when India offers to take commitments in marketing of petroleum products, including transportation and distribution, the government should include safeguards to ensure public safety and address the critical needs of the country.
The oil ministry conveyed its response to the Commerce Ministry, which is preparing India's negotiating strategy under the WTO's General Agreement on Trade in Services (GATS), early this month, official sources said.
Even though WTO talks are suspended, inter-departmental discussions are going on to finalise India's position to make sure that the country is ready whenever the talks resume. In WTO talks, a country cannot put barriers for foreign service provides once it has made a commitment under GATS.
The discussions are necessary to ensure that domestic regulations - such as those related to licensing and qualification requirements - do not nullify the commitments made by the country for opening up the services sector.
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Sources said the Petroleum Ministry has suggested including certain criteria that gives it the flexibility to bar foreign companies from marketing of oil and gas on grounds of public safety, environmental concerns or any such factor.The ministry was of the view that its existing rule under which only those foreign companies who have invested at least Rs 2,000 crore in setting up refineries or pipelines are given licenses could be included as a condition, sources said.
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