The government is looking at moving away from the administratively fixed price model in the oil and gas sector to a more ‘market-related price’, finance minister P Chidambaram said here late on Monday.
“We are at an advanced stage — a Cabinet paper is under consideration on how to move from a production sharing model to revenue sharing model for oil and gas explored and excavated by companies,” he told investors here as he started a tour of Canada and US to woo investors.
Targeting Canadian pension funds, which manage over $500 billion, he said the government is “determined” to “restart the investment cycle” as it was the key to high growth.
Reiterating the government’s commitment to the fiscal consolidation path, Chidambaram made it clear that even at 5%, India’s growth exceeded those of other BRICS nations, barring China. The difference from China, he said, was that India is an ‘open society’ and had ‘rule of law’. The meeting was attended by chief economic advisor Raghuram Rajan as well.
The finance minister repeatedly stressed that the government was willing ‘clarify’ the concerns of investors.