India in top ten countries with best resource governance -Governance Now

India in top ten countries with best resource governance

ONGC ranks 2nd of 74 state-owned enterprises in the Resource Governance Index, which measures quality of resource governance in 81 countries

GN Bureau | July 6, 2017

#Resources Governance Index #resources #minerals #oil and gas

India is the second-best performer in resource governance in the Asia-Pacific region after Australia, says the 2017 Resource Governance Index (RGI).

RGI measures the quality of resource governance in 81 resource-rich countries that produce oil, gas and minerals. The score is made up of three components: value realisation and revenue management (measures key characteristics of the extractives sector) and, the enabling environment that captures the broader context of governance.

In this year’s index, India’s oil and gas sector scored 70 of 100 points and ranks 9th of 89 country assessments. This rank lies in the range of countries where “it is reasonably likely that extractive resource wealth benefits citizens, but there may be costs to society”.

India scored:

75 of 100 points in good value realisation (covers governance of allocating extraction rights, exploration, production, environmental protection, revenue collection and state-owned enterprises),
66 of 100 points in revenue management (covers national budgeting, sub national resource revenue sharing and sovereign wealth funds) and,
69 of 100 points in enabling environment (draws on pre-existing research to measure the broader governance context)

The report says that though India is the highest-ranked country in the value realisation component in the Asia-Pacific region, political instability poses risks to the governance of the sector.

According to the report, India has proven oil reserves of 5,749 million barrels and gas reserves of 43 trillion cubic feet. The oil and gas sector contributes 12 percent of total exports, but growing domestic demand makes India a net oil importer. In 2015, India was the fourth largest consumer of oil after the United States, China and Japan.

The report also scores state-owned enterprises (SOEs) that “play a pivotal role in many countries’ extractive industries. Some harness oil and minerals for national development. Others squander nations’ resources through inefficiency and corruption.”

In India, majority of oil production is controlled by state-owned enterprises. The largest of these, the Oil and Natural Gas Corporation of India (ONGC), scored 87 of 100 points and ranks 2nd. The index highlights that such a score means an “opportunity for enhancing ONGC’s governance that lies in improving non-operational activity and commodity sales rules (both of which are related to ONGC’s role in selling fuel with a subsidised price to domestic customers)”.

See full report here

Comments

Other News

How to realise the full transformative potential of PM-JAY

The Pradhan Mantri Jan Arogya Yojana (PM-JAY), a welfare scheme which covers approximately 45 crore beneficiaries across India, provides cashless health cover of Rs. 5 lakh per family per year. It is the largest health insurance scheme which helped crores of poor families by reducing out-of-pocket expend

The missing men in India`s family planning story

Every pregnancy requires two people. Yet India`s family planning programme continues to ask only one of them to bear almost all of its medical consequences. The newly released National Family Health Survey-6 (2023-24) confirms just how entrenched this asymmetry remains: 36.5% of currently married women a

`Development must be judged beyond GDP, with rights and justice at core`

Delivering the IXth Chief Justice M.C. Chagla Memorial Lecture on ‘Human Rights and Sustainable Development Goals’, in Mumbai Friday, former Chief Justice of India Bhushan R. Gavai questioned whether conventional economic indicators such as gross domestic product (GDP), national income,

RTI exposes Rs 16,909 crore cost blowout on Mumbai-Goa Highway

Seventeen years after the centre first approved the widening of National Highway 66 between Mumbai and Goa into a four-lane highway, a fresh RTI reply has revealed a sharp escalation in the project`s sanctioned cost. According to the RTI reply obtained by activist Jeetendra

"India`s semiconductor ecosystem is expanding rapidly"

Prime minister Narendra Modi on Thursday inaugurated SEMICON India 2026 in New Delhi. Addressing the occasion and highlighting the significance of the event`s fifth edition, the PM drew a parallel between the launch of Semicon India and Vishwakarma Diwas. He pointed out the beautiful coincidence of

Cabinet approves raising EPFO wage ceiling from Rs.15,000 p.m. to Rs.25,000

The union cabinet, chaired by the prime minister, has approved the proposal of the Ministry of Labour & Employment to enhance the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs.15,000 to Rs.25,000 per month. The decision is expected to bring