GREY:NKRSF - Post by User
Comment by
mining_pays_my_billson Mar 18, 2015 10:39am
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Post# 23533508
RE:RE:RE:Oil ministry signals RIL, BP may need to wait longer for gas
RE:RE:RE:Oil ministry signals RIL, BP may need to wait longer for gasYes, there must be a payoff here, the decision to continue buying foreign oil makes no sense otherwise.
Buy from domestic producers and you:
1) Encourage foreign investment in the country, by showing foreign companies you are willing to purchase their goods if they set up shop in India- one of the main goals of the current government is to promote this atmosphere.
2) Create jobs in a country that is full of unemployement and poverty. Indian people make more money, buy more Indian goods, put money back into the economy.
3) And this is the big one- SPEND LESS money on gas, because he even admitted in the interview that imported gas is more expensive, albeit the gap is smaller, but it's domestic gas is still cheaper.
So, where is his argument for paying more money to bring in gas, and support foreign companiesoperating in other countries? Basically taking Indian taxpayers money and sending it overseas. On paper this move benefits absolutely no one. Ahhhh, but the benefit must be off paper.
NKO is a good comapny with attractive assets, but this red tape/ corruption is going to scare away a lot of potential buyers. Their silver lining is their Bangladeshi assets. I think they should sell the whole company, instead of just trying to sell Indian assets. Those assets are more of a liability I fear. If someone buys the whole company they get the good assets (bangladesh) which can derisk the liabilities (india).