Home grown E&P equipment and service providers: Good times are here?
These are good time for homegrown E&P equipment and service suppliers. 8The government is on a protectionist binge and that is helping small Indian companies to expand into larger entities 8Local company participation is encouraged and local content requirements will go up over time 8Onshore drilling or workover rigs will require 50% local content in the first year, 60% in next two years and 70% in the last two years. And that is good news for companies such as BHEL 8For premium bids and specialised drilling and completion services, the required local content has been pegged at 10% for the first year, 15% in next two years and 20% in the fourth and fifth years. Smart Indian collaborators can find space between the wedges here 8Manufacturers or service providers who meet the local content targets and whose quoted price is within 10% of lowest valid price bid, would be eligible for 10% purchase preference for a stipulated portion of the purchase order, on matching such price. 8There is now expectation that the Indian market is going to be good enough for global technology suppliers to find it worth their while to tie-up with local companies and add value. Click on Reports for more