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FDI in Petroleum & Gas Sector Witnesses 10 Times Jump: A Spurring Development

News: 

FDI in petroleum and natural gas sector witnessed an almost 10-time jump in 2014-15 as compared to the preceding fiscal, touching Rs 6,473.22 crore, government told the Lok Sabha today. 

Source: ET

SNP Insight: 

The 10-times increase in the FDI levels indicate renewed Foreign Investor's interest in India's Petroleum and Gas Sector coming with key changes with New Government's Policy like revison in Gas pricing in 2014. The highest investment is being entailed by the Exploration and Production sector would considerbaly ease the development process of domestic resources.However given the longer gestation period of E&P activities, spearheading the execution process along with sustained increase in FDI hold the key for returns.

Source: SNP Infra Research