Pre-budget memorandum-II: Is it possible to pitch for oil-for-EPC projects in the Gulf
Jan 20: The oil-for-EPC projects concept paper calls for an Inter-ministerial group under PMO comprising senior representatives from Ministry of Finance, Ministry of Commerce, Ministry of Petroleum & Natural Gas and Ministry of External affairs. 8The convener of this group should be Ministry of External affairs (MEA), as they have a permanent presence in these countries and have the relationships to further the economic interests of the country. A senior MEA official in New Delhi can be the coordinator. Industry representatives can be coopted. The following can be done, says the memorandum: 8All government owned Oil marketing companies should make it a precondition that a predetermined percentage of crude oil revenue should be given as EPC contracts to Indian Companies. 8Indian companies that are technically qualified by end clients should be allowed to participate and get EPC contracts against procurement of crude oil. 8Indian companies should be given opportunity to match the lowest bid 8Periodic review meetings may take place where oil companies and Indian EPC companies 8This approach can boost project exports to the tune of $ 10-15 billion per year 8Is it really workable? Click on Reports for more.