LONDON and NEW DELHI, July 5, 2017 /PRNewswire/ --
Following the recent energy trade collaboration between the UK and India, Prashant Modi CEO and MD of Great Eastern Energy Corporation Limited (LON:GEEC) said that he is looking forward to investing a whopping £768 million (USD $1 billion) to further tap on the unconventional energy resources of India. This came after the recently held 9th UK-India Economic and Financial Dialogue (EFD) where both the governments decided on a £240 million joint investment to boost India's fast growing energy market as well strengthen the trading relationship between both the nations. These recent developments in the country are further expected to boost Prime Minister Narendra Modi's enterprising energy plans as well as boost bi-lateral ties between both the countries.
Earlier in April, UK's Secretary of State for Business, Energy and Industrial Strategy Greg Clark visited India and discussed new partnership opportunities with Piyush Goyal, minister for Coal and Mines, New & Renewable Energy and Power. Among all the G20 countries, the UK is the largest investor in India and it believes that, Brexit along with the latest political developments taking place in both the nations will further strengthen B2B and G2G activities amongst them.
Elaborating on the business approach of GEECL, Prashant Modi said that "At present the top priority of GEECL is to continue its drilling activities in the Raniganj (South) block located in the state of West Bengal, India, where further 144 wells are to be dug. In the next 5 years, we will invest £768 million (USD $1 billion) across the unconventional energy space in India focusing on CBM and Shale gas as well." As of now, the company has no plans of entering the conventional energy sector of India.
The government of India, over the past couple of years has taken various steps to reduce its dependence on energy imports. In March 2016 last year, the government adopted a new policy, HELP (Hydrocarbon Exploration Licensing Policy) based on a revenue sharing model which focuses on 4 main aspects - uniform licensing, marketing & pricing freedom and open acreages. Speaking on these developments, Prashant Modi stated that he is confident that it will encourage investment from foreign as well as domestic players into the fast growing energy market of India.
Last year, Rt Hon Phillip Hammond MP met with Mr. Arun Jaitley (Finance Minister, Defence, Minister of Corporate Affairs in the Cabinet of India) to build a new partnership which will leverage the investment of City of London into the growing energy market of India. In the same week, the UK Trade and Investment also welcomed the issuance of the world's first Masala Bond at the London Stock Exchange by renowned Indian Corporate, Housing Development Finance Corporation (HDFC).
The adoption of new policy measures by the Modi government has certainly encouraged an increasing number of UK businesses to increase their investments in the country. According to the UK-India Business Council, as much as sixty percent of business based in the UK has increased their investments in India because they feel opportunities are available in plenty in the country. With India being the 3rd largest foreign investor in the UK and the vast opportunities of investments in India making it a preferred destination for investment for the UK, things are so far moving ahead in the right direction for both the governments.