Natural gas sector growth hit by pricing, mktg policies: Report

Given the need to boost development of domestic oil and gas industry in an energy starved nation, the government needs to proactively encourage public-private partnerships for developing the oil and gas industry, it said.

"India's dream of energy security may turn into reality if the policies are aligned to meet the challenges the sector is facing," it said adding the country's oil and gas sector has untapped potential, calling for more intense exploration activities.

By 2031-32, India's import dependency on fossil fuels is likely to be between 91 and 94 per cent for oil, between 40 and 50 per cent for gas and between 40 and 50 per cent for coal, the report said.

Such high import dependency is likely to strain India's foreign exchange reserves and balance of payments position and will result in rupee depreciation, fiscal deficits and

inflation.

"To counter these challenges, the monetary policy may have to raise interest rates, which will have a negative effect on growth, investments and job creation," the study said.

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