Policy Watch; Gas by the river, small ports and alongside highways
By: Amit Bhushan 5th Jan, 2015
With commodities including energy going down and trends and price behaviour of these commodities known, we still do not see enough action happening on ground. We do not seem to have detailed policy, procedures and regulations on River ports or near shore sea transportation going up which is holding possible infra ramp in the logistics sectors.
A clarity would have allowed states to launch several projects in public, private and PPP domains for logistics as well as necessary energy supply ramp up projects. This would have also required scaling government monitoring and facilitation mechanisms for ensuring safety and security as well as dispute settlements.
This is even as we keep listening that water transportation is amongst the relatively cheapest mode and possibly more easily scalable due to clear "right of way" unlike road or rail sectors. Yet the sector seems to be hindered more by politicking and unable to attract investments that it may deserve, though past track record or corporate in the sector may also have some role in hold-up of policies and lack of development f the sector.
While we have tax simplification being of hold, however the policy on development of market for energy products viz. gas or electricity or for that matter even coal or related methane; also seems to be shifting to low keg given the currently prevailing low international prices of crude. This is leading to a slowdown of exploration and upstream activities.
A sound market development policy in such a scenario could have led to investments being attracted to downstream activities like gas distribution and giving better access of cheap natural gas to people spurring a huge activity around the same. We have production/excise duty levied as per fuel preference for consumer vehicles wherein diesel attracts a higher duty.
A lower production/excise tax on CNG vehicle (or mix fuel use vehicles/generators/motors etc.) may increase market activity on this count manifold giving private sector enough incentives to participate in clearer fuel technologies including related infra development. Given that many producers' nations are looking to adjust their domestic policies around cheaper fuel price expectations, the leadership should be able to push for a domestic CNG vehicle export markets within producer nations for the industries that may develop around CNG sector.
For the CNG producers this may yield a long term price benefit vis-a-vis crude, while for manufacturing sector in emerging markets, it gives new investment avenues besides cheaper, relatively cleaner fuel. Given that CNG is in relative abundance compared to crude, this may have more takers and a possibly bigger markets.
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By: Amit Bhushan 5th Jan, 2015
With commodities including energy going down and trends and price behaviour of these commodities known, we still do not see enough action happening on ground. We do not seem to have detailed policy, procedures and regulations on River ports or near shore sea transportation going up which is holding possible infra ramp in the logistics sectors.
A clarity would have allowed states to launch several projects in public, private and PPP domains for logistics as well as necessary energy supply ramp up projects. This would have also required scaling government monitoring and facilitation mechanisms for ensuring safety and security as well as dispute settlements.
This is even as we keep listening that water transportation is amongst the relatively cheapest mode and possibly more easily scalable due to clear "right of way" unlike road or rail sectors. Yet the sector seems to be hindered more by politicking and unable to attract investments that it may deserve, though past track record or corporate in the sector may also have some role in hold-up of policies and lack of development f the sector.
While we have tax simplification being of hold, however the policy on development of market for energy products viz. gas or electricity or for that matter even coal or related methane; also seems to be shifting to low keg given the currently prevailing low international prices of crude. This is leading to a slowdown of exploration and upstream activities.
A sound market development policy in such a scenario could have led to investments being attracted to downstream activities like gas distribution and giving better access of cheap natural gas to people spurring a huge activity around the same. We have production/excise duty levied as per fuel preference for consumer vehicles wherein diesel attracts a higher duty.
A lower production/excise tax on CNG vehicle (or mix fuel use vehicles/generators/motors etc.) may increase market activity on this count manifold giving private sector enough incentives to participate in clearer fuel technologies including related infra development. Given that many producers' nations are looking to adjust their domestic policies around cheaper fuel price expectations, the leadership should be able to push for a domestic CNG vehicle export markets within producer nations for the industries that may develop around CNG sector.
For the CNG producers this may yield a long term price benefit vis-a-vis crude, while for manufacturing sector in emerging markets, it gives new investment avenues besides cheaper, relatively cleaner fuel. Given that CNG is in relative abundance compared to crude, this may have more takers and a possibly bigger markets.
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