To help counter a depreciating rupee, Prime Minister Narendra Modi sought a review of payment terms with major oil producers as part of the NDA government’s strategy. He was addressing oil ministers and chief executives of both global and domestic oil companies at an event here.
According to an official statement issued after the meeting, Modi “requested for review of payment terms so as to provide temporary relief to the local currency”.
The rupee has fallen 14.5 per cent this year, making oil and other imports more expensive. In the meeting with leading global CEOs of oil and gas sector and ministers from Saudi Arabia and the UAE, Modi made a strong case for a partnership between producers and consumers in the oil market as it exists in other markets.
The Energy Minister of Saudi Arabia Khalid al-Falih said that Riyadh should prioritize and strengthen relations with Delhi as it is a Strategic priority. Mr Khalid al-Falih said, “Saudi will fulfil all the energy needs of India and will stand committed to it”. Speaking at the India Energy Forum, he told the audience that this move of strengthening relations will increase the investment for India also.
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An Investment of $44 billion proposed by Saudi Arabia in the refinery at Ratnagiri is only a start by the company. The company leans towards an investment which involves integrated downstream business and is keenly looking to it. This investment will include retailers and also will affect the storage capacity.
‘India a priority’
Mr. al-Falih, in a meeting with the Prime Minister and Petroleum Minister Dharmendra Pradhan, said: “I held a meeting with Prime Minister Narendra Modi and Petroleum Minister Dharmendra Pradhan and assured them of our full and continuing commitment to meet India’s energy demands, especially in oil, and to invest in India”. Mr al-Falih also said, “to strengthen relations with India is a strategic priority of the Kingdom of Saudi Arabia.”
99.8% of the total vehicles in the world are still categorized in the conventional vehicles segment. The electric vehicles only come under the passenger vehicle segment and their oil demand accounts only a quarter.
The Minister added, “The majority of oil demand comes from sectors like heavy vehicles and commercial vehicles, and this demand will remain for a long time to come”.