PetroFed and EYE ON have released the results of their one-month long investor index and market survey on ‘India’s Hydrocarbon Sector’ at the AnnualPetroFed Awards ceremony held at New Delhi on Monday.
Results show increased investor confidence in India’s oil & gas market and strong industry approval of recent policy reforms. The high profile survey shows 87% of investors have confidence in the country’s oil & gas market, with increasing trust in the industry’s potential over the medium to long-term. Over 82.8% of respondents gave a positive rating for investment conditions on Tuesday, and 92.3% project that investment conditions will be positive in the long-term. As per the survey results, the new government policies like Hydrocarbon Exploration and Licensing Policy (HELP) have been received very positively.
Shell India Chairman Yasmine Hilton, gave a keynote speech on the occasion of the PetroFed Awards. One of the highlights of the awards was the panel discussion conducted on ‘Implications of GST on Oil & Gas Sector’. In the discussion, the Finance Directors of the most influential oil companies raised the concern that by exclusion of Crude oil, Natural gas and major petroleum products from the ambit of GST for the time being, the Petroleum Industry will take a major hit in the form of stranded taxes as input credit would not be available in the hybrid regime of taxation.Compliance challenge in a dual regime was another issue highlighted by the panelists. A key option deliberated by the panel to mitigate the impact was “Zero rating” of the excluded goods. The experts expressed the need to act quickly before it becomes too late.