South Asian Business news and information

Indian economy is growing at a fast pace and to sustain the continuous high economic growth, India needs more fuel at a reasonable price. Now, shortage of gas is becoming a cause of concern for Indian government. According to a report published in Monsters and Critics.com:

India`s power sector continues to be hit by the shortages with some 12,000 megawatts of gas power plants running at only half their capacity. The gas has hampered the supply of power to consumers.

More than 30 percent of government-controlled National Thermal Power Corp. `s gas-based plants are stranded either because of non-availability of gas or due to the high price of fuel. The gas shortage has become a severe problem not only for NTPC, but also for some of the states where projects with more than 1,000 MW capacities have been commissioned, but do not have the required gas supplies to ensure they run at full capacity.

India needs to invest more on exploring gas within India. Well, I feel that Indian government should encourage the private sector and foreign companies to explore gas and oil freely. Demand for gas will continue to increase in the international market for the foreseeable future. So, India has to act decisively on ensuring the supply of gas.

At the same time, India must try to have good relationship with gas producing countries of Central Asia, Middle East and Africa. Indian leaders have to take the issue of gas supply on a priority basis.

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