Indian Economy-News & Updates

[Screaming Skull]

ONGC scores hat-trick on gas discoveries​

23 Jun 2009,

NEW DELHI: India’s biggest oil explorer ONGC has struck oil and gas in three new blocks, one of these finds its most significant in decades and holding the promise of significantly narrowing the energy-starved country’s demand-supply gap in the natural gas sector.

The gas find at Krishna Godavari (K-G) basin off the Andhra coast could prove as rich as the Reliance Industries’ D-6 block, which, at its peak, is expected to double India’s current natural gas output. The other two discoveries included an oil find in Charada-3 offshore block in Cambay basin and oil and gas find in Matar in Vadodara district, both in Gujarat.

ONGC chairman RS Sharma confirmed the three discoveries, but declined to elaborate on the size of these finds. But a senior official in the company, who requested anonymity, said the K-G basin find could have an estimated reserve of 10 trillion cubic feet (TCF) of gas.

Even the Charada-3 oil find was “significant”, the official said, calling it “a large accumulation spread in about 8 km of area.” The success in Matar was notable as the block was earlier awarded to a combine of Niko Resources and GSPC, which didn’t have much success in finding hydrocarbons, the ONGC official said.

“We have notified the finds to the Directorate General of Hydrocarbon (DGH). If the approvals come in, it would take about three to four years for production from these fields to begin,” ONGC chairman and managing director RS Sharma told ET NOW in an exclusive interview.

The head of the DGH, VK Sibal said his organisation was still to ratify ONGC’s finds. “We are going through the case and we will take a call soon,” he said.

India currently imports almost 80% of its energy needs, and analysts say that many more new finds may be needed to satiate the burgeoning appetite for energy in the rapidly growing economy.

ONGC, one of India’s earliest and pre-eminent oil firms, had its last major discoveries in the 1980s when it discovered oil and gas off the Mumbai coast.

More recently, that discovery has been eclipsed by the Reliance gas discovery in 2002, now estimated to have reserves of 11.5 TCF. Widely regarded as India’s biggest gas discoveries to date, production from Reliance's D-6 field is set to double country's current gas production of about 89 million standard cubic meter per day (MMSCMD) at its peak.

Shares in state-run ONGC, India's second most valuable company by market value, closed 1.6% down at Rs 1,010 on the BSE on Monday, tracking a weak overall market.

The share price fall came on a day ET, quoting senior government officials, reported that ONGC was likely to be among firms that could in the future have to pay royalties on the basis of their sale price of oil and gas instead of the now prevalent well-head value.

For India's largest oil and natural gas explorer, the discoveries couldn't have come at a better time. ONGC, like most of its global peers, is constantly replacing its old and depleting reserves of oil and gas with new discoveries.

"We made almost 23 discoveries last year and our reserve-to-replacement ratio is almost 1:4, as compared to global averages of 1:1," ONGC chairman Mr Sharma said.

All the three blocks on which ONGC, in which the government has a near 80% stake, has struck oil and gas were given to the company without competitive bidding. The blocks were awarded before the government launched its policy of inviting private and foreign players to bid for oil and gas fields under its new exploration licencing policy (Nelp).

Analysts say ONGC's discoveries could positively impact investor perception of India's hydrocarbon reserves, especially since it comes two months ahead of the next round of bidding for oil and gas blocks under NELP-VIII..

 

[insas91]

India will beat China in 2010: WB


Hopes of an economic rebound became stronger on Monday with the World Bank predicting that India’s gross domestic product (GDP) would grow by 8 per cent in 2010.

If achieved, it would make India the hottest growth economy in the world, better even than China that was forecast to grow at 7.7 per cent next year. The world economy was projected to grow at 2 per cent in 2010.

The data, which came in a report Global Development Finance 2009: Charting a Global Recovery, could fuel interest in India among foreign investors.

“Foreign direct investment inflows to India doubled, reflecting economic reforms in recent years and progress in opening up additional sectors for foreign investment,” the report said.

Latest domestic macroeconomic data has shown strong signs of a rebound. India’s industrial output showed 1.4 per cent growth in April, up from a 0.75 per cent contraction a month earlier.

“We may see more green shoots of recovery as fiscal and monetary stimulus have an impact,” said Manoj Vohra, Director, Research at Economist Intelligence Unit (EIU).

http://www.hindustantimes.com/Story...+grow+faster+than+China+in+2010%3a+Report

 

[Jako]

Great news......this report by WB,wd furthur bolster the foreign investments in india.......go india go

 

[jeypore]

This is the factor of greater disposal income of Indians then Chinese, and also a better stable internal market of India then the Chinese.

 

[insas91]

Indian economy is not export driven unlike China's as a result India could weather the storm far effectively than China. Also with a growth oriented governrnent we can rest assured that these figures will be achieved.

Infact Dr. Singh targets a growth of 9% by the end of 2010.
Will strive for 9% growth despite slowdown: Singh

 

[SecularHumanist]

Its easier to have a higher growth than China because India has a much lower GDP output at the moment.

 

[insas91]

Its easier to have a higher growth than China because India has a much lower GDP output at the moment.

Bad economics. China was growing at 10% when there was no slowdown despite having three times India's GDP. Growth is percent increase in GDP and has nothing to do with existing GDP.

 

[SecularHumanist]

Bad economics. China was growing at 10% when there was no slowdown despite having three times India's GDP. Growth is percent increase in GDP and has nothing to do with existing GDP.

And thats why that was mind boggling growth. Growth is the positive change in GDP from the last period of measurement (existing or previous year's GDP if going by annual method) so it has everything to do with the 'existing' GDP.

 

[jeypore]

And thats why that was mind boggling growth. Growth is the positive change in GDP from the last period of measurement (existing or previous year's GDP if going by annual method) so it has everything to do with the 'existing' GDP.

That is not a good comparison method, one can argue that US with it projected growth of 2% will fair better then china, based on existing GDP.

A percent increase of GDP is a good indicator that a country is growing, but unlike in India's case it really looks like that the internal market has help to push the GDP to 8%. That is where China has always lagged behind, by creating a export oriented market, there internal market did not grow because of lack of disposable income, the wages have been universally low from the blue to the white collar worker.

 

[xebex]

India is poised to rise and no economic meltdown can bring the elephant down. cheers for all the way to the top.

 

[SecularHumanist]

That is not a good comparison method, one can argue that US with it projected growth of 2% will fair better then china, based on existing GDP.

A percent increase of GDP is a good indicator that a country is growing, but unlike in India's case it really looks like that the internal market has help to push the GDP to 8%. That is where China has always lagged behind, by creating a export oriented market, there internal market did not grow because of lack of disposable income, the wages have been universally low from the blue to the white collar worker.

What I meant was just put it into perspective. A bigger economy growing at 10% is more impressive than a smaller one growing at a similar rate. But yes there are different reasons for the growth of each country and India is doing a good job no doubt.

 

[SinoIndusFriendship]

All these discussions of GDP is really interesting in that most people don't know the reality of how GDP is estimated. Let me state these facts and figures (some are approximation as I am recalling from prior experience):

(1) Fact one is that GDP is not known but "estimated".

(2) Important fact two is that what IS included and IS NOT included in the GDP estimation makes up a large %. Take example the USA, which has a purported 14 Trillion a year --- but the problem with this is that 72% is based on "SALES". During the past few years (before the housing bubble started deflated), each time a house exchanged hands it was counted as part of GDP. This is problematic since NOTHING was created or produced, no value whatsoever (in fact negative value of non-productivity).

(3) China's estimation of GDP is EXTREMELY CONSERVATIVE. If you've ever traveled to China you would be FLABBERGASTED !!!! I mean, China alone has more development and construction that the ENTIRE EU + USA + JAPAN + KOREA IN THE LAST 100 YEARS put together!!! I've been all over the world, and Dubai is NOTHING compared to even a SMALL TINY CITY in China.....

(4) India's GDP is grossly over-exaggerated, even using PPP. The image portrayed by western media is that Pakistan (as all Muslim nations) is "backwards, stone age, full of mullahs running the place" --- this is WRONG! Before I came to India I thought India was more advanced and developed than Pakistan, but the opposite is true. That is why I like the thread "India is advancing but has a long way to go". Nearly all of the time when I ask my India/Hindu friends and strangers they immediately give the same answer: "India is Great! India is Shinning! New India! Incredible India! India has lots of jobs! India is the future Super-Power!"

I am fascinated with India cultures, Bollywood, music, customs, clothing. I invest a lot of time to understand their thinking and visit their popular websites to see what they write and say.

I like them. Most people find their personality difficult to get along with at first, for example their arrogance. But once you understand where they are coming from you accept them for who they are. They have good points and bad points, we all do, no one is perfect.

The thing with Chinese is that they are not focused on GDP or what the useless gossip the rest of the world is fixated on. Honestly the USA and Europe's economy is a "bubble economy", in that I mean EVERYTHING IS HYPED AND ARTIFICIALLY INFLATED. If you want actual GDP, China is larger than USA by a significant amount. India's GDP is much, much smaller. That is why their is the saying: "Once the Dragon awakens, the world will shake!!!"

 

[aimarraul]

my sweat indian friends,shouldn't we focus on this year?someday india will be fastest growing economy ,but anything can happen before someday.1.3B people is biggest market in the world ，and china still have long way to be become a developed country,so it's not that easy to slowdown with the right policy of expandings the internal demand.and you do know that the WB change the GDP growth prediction everymonth,right? so cheers ,when you actually made it.by the way,are you sure this EC didn't affect your IT industry and service outsourcing ?i don't know ,but still good luck to india.here is some details about our policy to expandings the internal demand：
1。 Home appliances going to the countryside
It is part of the government's plan to battle the global recession by stimulating the slackened domestic manufacturing industry, which faces dwindling external demand. The government-subsidized project is not only expected to benefit farmers' living standards but is also expected to help the country's suffering manufacturing sector pull out of the economic winter.
2。$124 billion on improving the health care system
China's State Council said the country will spend $124 billion on improving the health care system over the next three years, including a makeover of public hospitals often criticized for their high fees, lack of access and poor doctor services, AP reported.
The goals include increasing participation in the basic medical insurance system to 90 percent for both urban and rural Chinese, the State Council said in a statement. The move can be seen as another way to nudge Chinese into spending more to help boost the country's slowing economy.

not to mention that $586 billion infrastructure stimulus package.if china slows down ,it means the world slows down,cus china is a developing country .if people don't have money to buy clothes, what else they can afford ?
and the world won't always be under this crisis,right?this is the only for sure prediction we should cheer for.

 

[Nemesis]

All these discussions of GDP is really interesting in that most people don't know the reality of how GDP is estimated. Let me state these facts and figures (some are approximation as I am recalling from prior experience):

(1) Fact one is that GDP is not known but "estimated".

(2) Important fact two is that what IS included and IS NOT included in the GDP estimation makes up a large %. Take example the USA, which has a purported 14 Trillion a year --- but the problem with this is that 72% is based on "SALES". During the past few years (before the housing bubble started deflated), each time a house exchanged hands it was counted as part of GDP. This is problematic since NOTHING was created or produced, no value whatsoever (in fact negative value of non-productivity).

(3) China's estimation of GDP is EXTREMELY CONSERVATIVE. If you've ever traveled to China you would be FLABBERGASTED !!!! I mean, China alone has more development and construction that the ENTIRE EU + USA + JAPAN + KOREA IN THE LAST 100 YEARS put together!!! I've been all over the world, and Dubai is NOTHING compared to even a SMALL TINY CITY in China.....

(4) India's GDP is grossly over-exaggerated, even using PPP. The image portrayed by western media is that Pakistan (as all Muslim nations) is "backwards, stone age, full of mullahs running the place" --- this is WRONG! Before I came to India I thought India was more advanced and developed than Pakistan, but the opposite is true. That is why I like the thread "India is advancing but has a long way to go". Nearly all of the time when I ask my India/Hindu friends and strangers they immediately give the same answer: "India is Great! India is Shinning! New India! Incredible India! India has lots of jobs! India is the future Super-Power!"

I am fascinated with India cultures, Bollywood, music, customs, clothing. I invest a lot of time to understand their thinking and visit their popular websites to see what they write and say.

I like them. Most people find their personality difficult to get along with at first, for example their arrogance. But once you understand where they are coming from you accept them for who they are. They have good points and bad points, we all do, no one is perfect.

The thing with Chinese is that they are not focused on GDP or what the useless gossip the rest of the world is fixated on. Honestly the USA and Europe's economy is a "bubble economy", in that I mean EVERYTHING IS HYPED AND ARTIFICIALLY INFLATED. If you want actual GDP, China is larger than USA by a significant amount. India's GDP is much, much smaller. That is why their is the saying: "Once the Dragon awakens, the world will shake!!!"

Three things, China's GDP estimate is not extremely conservative. It could be argued that it's the opposite. Secondly, India's GDP based on PPP is also not grossly exaggerated. Thirdly Pakistan is not more advanced than India. An utterly ridiculous suggestion.

Stop talking in hyperbole's please.

Back to topic, even if India does beat China in 2010 it hardly makes a difference. China has been consistently the fastest growing economy for the last 30 years. We have a lot of catching up to do.

 

[Omar1984]

(4) India's GDP is grossly over-exaggerated, even using PPP. The image portrayed by western media is that Pakistan (as all Muslim nations) is "backwards, stone age, full of mullahs running the place" --- this is WRONG! Before I came to India I thought India was more advanced and developed than Pakistan, but the opposite is true. That is why I like the thread "India is advancing but has a long way to go". Nearly all of the time when I ask my India/Hindu friends and strangers they immediately give the same answer: "India is Great! India is Shinning! New India! Incredible India! India has lots of jobs! India is the future Super-Power!"

I am fascinated with India cultures, Bollywood, music, customs, clothing. I invest a lot of time to understand their thinking and visit their popular websites to see what they write and say.

I like them. Most people find their personality difficult to get along with at first, for example their arrogance. But once you understand where they are coming from you accept them for who they are. They have good points and bad points, we all do, no one is perfect.

The thing about Indians you have to understand is that they are nationalists. They refuse to hear anything bad about their country. They only focus on the good parts and leave the bad parts out. India has some of the most polluted cities in the world, but they still will focus on the clean areas, India has one of the highest population living below the poverty line in the world, but they still will focus on the rich Indians, India has among the largest cases of HIV in the world but they still will focus on the good parts of their health care.


Pakistanis are quite the opposite, some of us complain about the bad things wherever and whenever we get the chance and some of us dont look at the good parts of our country and focus on the bad parts. Zionists dont like us either because we are a Muslim nation and the only Muslim nuclear power.


We dealt with Indians for a long, long time..we know how Indians think.


P.S. Indians love the west and the zionists so dont be too surprised if western media glorifies India....Indians are very good at kissing up to the westerners.

This is just my observation about Indians...