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

Covid-19: Odisha’s Ganjam district witnesses spike

Every year, Babula Behera, a 45-year-old construction helper in Bhubaneswar, takes off from his work from July to October, and cultivates paddy on his half-acre land in his village in Chikiti block under Odisha’s Ganjam district. The harvest, he says, provides rice to his family of five for the entir

Rail travel to be Covid-safe now

In the time of the Covid-19 pandemic, travelling can be hazardous, but the railways have come up with new coaches designed to help the passenger avoid the risk of infection to the maximum extent. The Indian Railways’ production unit, Rail Coach Factory, Kapurthala, has developed a &lsq

Covid-19: How states compare on recovery rate

While India’s Covid-19 recovery rate has improved to 63.02%, there are 19 states that are doing better than that. They are led by the national capital, Delhi. Here is a list of these states, as on Monday evening: Ladakh (UT)    85.45% Delhi   

5.3 lakh recover from Covid-19; active cases at 2.9 lakh

Though India remains the third-most affected country in terms of Covid-19 infections, the situation seems to be improving as the number of people who have recovered from infection has rose to 5,34,620, with a recovery rate of 62.93 percent. “Focussed and coordinated steps taken in tand

Covid-19: Let`s introspect, learn right lessons, says VP

Vice president M Venkaiah Naidu has urged the people to introspect on the life during the last few months under coronavirus induced confinement and assess if they have learned the right lessons and equipped themselves to deal with such uncertainties. Seeking to engage with people on the cau

Four trends that will shape healthcare post-Covid

The Covid-19 pandemic has disrupted economies and healthcare systems across the world. Even in the countries, like the US, that have the highest spend on healthcare and public health emergency preparedness, the impact of coronavirus pandemic on health and livelihoods of people has been tremendous. There ar



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter