India considers lifting retail investment threshold

The Indian government is considering the abolition of the minimum investment requirement of Rs 2,000 crore (US$493.09 million) for petroleum companies to take up retail marketing of transportation fuels. The issue had figured in the integrated energy policy recommendations for the petroleum and natural gas sector. In various detailed appraisals, the Planning Commission is of the view that the regulator can easily ensure that fly-by-night operators do not enter the retail sector, even without such an investment hurdle. The petroleum ministry is also agreeable to lifting the investment requirement. The issue may be referred to the Energy Coordination Committee (ECC), headed by Prime Minister Manmohan Singh, for final clearance, government sources told the Hindustan Times. (August 1, 2007)