Financial Daily from THE HINDU group of publications
Saturday, Jan 17, 2004
Financial Daily from THE HINDU group of publications Saturday, Jan 17, 2004 |
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Corporate
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Outlook 100 pc FDI cap may pave way for Shell's retail operations Our Bureau
New Delhi , Jan 16 THE Cabinet's approval on Thursday of allowing 100 per cent foreign direct investment (FDI) in the petroleum marketing business will make it easier for multinational oil major Royal Dutch/Shell to set up retail operations. Shell had earlier sought relaxation from the Government to allow 100 per cent FDI in the retailing business as against the then prevailing limit of 74 per cent. The other hurdle for Shell in entering the retailing business is that of meeting the qualifying requirement of Rs 2,000 crore investment in the petroleum sector. Shell has so far invested Rs 1,700 crore and hopes to achieve the required investment level in another three months' time. Meanwhile, industry sources add that the Cabinet's move to allow 100 per cent FDI in refineries as well as pipelines is not going to find too many takers in the short term. In the refinery segment, there is surplus capacity in the country. In the exploration business, the Cabinet approved 100 per cent FDI.
More Stories on : Outlook | Petroleum
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