Our biggest problem is Chinese imports. The trade is heavily imbalanced in China's favour. Indian merchandise exports to China are so low relative to imports, it makes hardly any difference if China raises tariffs on Indian goods. The question is can we manufacture the goods locally at the import price (or upto some x% above it). A good start would be to create tariff and non-tariff barriers for all such goods that can be manufactured upto, let us say 20% above the import price.chetak wrote:a_bharat ji,a_bharat wrote: Different GSTs are not necessary. India can set high import tariff rates and penalize under-invoicing.
and what will we do when others retaliate in a similar tit for tat fashion
Indian Economy News & Discussion - Nov 27 2017
Re: Indian Economy News & Discussion - Nov 27 2017
Re: Indian Economy News & Discussion - Nov 27 2017
Top ten fastest growing major state economies of India.
Gujarat has the fastest growing state GDP for the last nine years. Data released by RBI shows that the Gross state domestic product at constant price (GSDP) of Gujarat has increased at compounded annual growth rate (CAGR) of 8.2 per cent from Rs 6.16 lakh crore in financial year 2012 to Rs 12.48 lakh crore in FY21 (latest data of FY22 is not available). It is also the second largest state GDP in India only behind Maharastra which has GSDP of Rs 18.89 Lakh crore.
Karnataka has the second fastest growing major state economy clocking a CAGR of 7.3 per cent from Rs 6.06 lakh crore in FY12 to Rs 11.44 lakh crore in FY21. Karnataka is also the fourth largest state economy. At the third spot is Haryana with a GSDP of Rs 5.36 lakh crore in FY21. The state had GSDP of Rs 2.97 lakh crore in FY12, state economy increased 6.8 per cent annually. With a CAGR of 6.7 per cent, Madhya Pradesh is ranked fourth in the list of fastest growing states. The state saw a growth in GDP from Rs 3.16 lakh crore in FY12 to Rs 5.65 lakh crore FY21. MP is followed by Andhra Pradesh which has registered an annual GSDP growth rate of 6.5 per cent to touch Rs 6.70 lakh crore in FY21 from Rs 3.79 lakh crore in FY12. Andhra Pradesh was also seventh largest state economy.
Andhra Pradesh’s neighbouring state Telangana is at sixth spot in the list with nine year CAGR of 6.1 per cent. The GDP grew from Rs 3.59 lakh crore (FY12) to Rs 6.10 lakh crore in FY21. It is followed by Tamil Nadu with a CAGR of 5.8 per cent, 5.8 per cent and Rs 12.46 lakh crore GSDP in FY21. Odisha is ranked eight with CAGR of 5.73 per cent and GDP size of Rs 3.81 lakh crore. Delhi is at number nine in this list with annual GSDP growth rate of 5.67 per cent, as Delhi’s GDP size increased from Rs 3.44 lakh crore in FY12 to Rs 5.65 lakh crore in FY21. India’s tenth fastest growing major state is Assam, as it has posted a CAGR of 5.3 per cent and GSDP of Rs 2.28 lakh crore in FY21.
Kerala with growth rate of 3.9 per cent, Jammu & Kashmir 4.1 per cent CAGR and Jharkhand with CAGR of 4.2 per cent are the slowest growing major states of India. Among the smaller states Mizoram has the fastest growth rate of 7.9 per cent with economy size of Rs 14.4 thousand crore in FY21, while Meghalaya with GDP of state at Rs 23.75 thousand crore recorded slowest GDP growth CAGR of 2 per cent for the past nine years (FY12 to FY21).
Gujarat has the fastest growing state GDP for the last nine years. Data released by RBI shows that the Gross state domestic product at constant price (GSDP) of Gujarat has increased at compounded annual growth rate (CAGR) of 8.2 per cent from Rs 6.16 lakh crore in financial year 2012 to Rs 12.48 lakh crore in FY21 (latest data of FY22 is not available). It is also the second largest state GDP in India only behind Maharastra which has GSDP of Rs 18.89 Lakh crore.
Karnataka has the second fastest growing major state economy clocking a CAGR of 7.3 per cent from Rs 6.06 lakh crore in FY12 to Rs 11.44 lakh crore in FY21. Karnataka is also the fourth largest state economy. At the third spot is Haryana with a GSDP of Rs 5.36 lakh crore in FY21. The state had GSDP of Rs 2.97 lakh crore in FY12, state economy increased 6.8 per cent annually. With a CAGR of 6.7 per cent, Madhya Pradesh is ranked fourth in the list of fastest growing states. The state saw a growth in GDP from Rs 3.16 lakh crore in FY12 to Rs 5.65 lakh crore FY21. MP is followed by Andhra Pradesh which has registered an annual GSDP growth rate of 6.5 per cent to touch Rs 6.70 lakh crore in FY21 from Rs 3.79 lakh crore in FY12. Andhra Pradesh was also seventh largest state economy.
Andhra Pradesh’s neighbouring state Telangana is at sixth spot in the list with nine year CAGR of 6.1 per cent. The GDP grew from Rs 3.59 lakh crore (FY12) to Rs 6.10 lakh crore in FY21. It is followed by Tamil Nadu with a CAGR of 5.8 per cent, 5.8 per cent and Rs 12.46 lakh crore GSDP in FY21. Odisha is ranked eight with CAGR of 5.73 per cent and GDP size of Rs 3.81 lakh crore. Delhi is at number nine in this list with annual GSDP growth rate of 5.67 per cent, as Delhi’s GDP size increased from Rs 3.44 lakh crore in FY12 to Rs 5.65 lakh crore in FY21. India’s tenth fastest growing major state is Assam, as it has posted a CAGR of 5.3 per cent and GSDP of Rs 2.28 lakh crore in FY21.
Kerala with growth rate of 3.9 per cent, Jammu & Kashmir 4.1 per cent CAGR and Jharkhand with CAGR of 4.2 per cent are the slowest growing major states of India. Among the smaller states Mizoram has the fastest growth rate of 7.9 per cent with economy size of Rs 14.4 thousand crore in FY21, while Meghalaya with GDP of state at Rs 23.75 thousand crore recorded slowest GDP growth CAGR of 2 per cent for the past nine years (FY12 to FY21).
Re: Indian Economy News & Discussion - Nov 27 2017
let's see how this goes and how it affects India's economy and how long it lasts
EU Agrees to Price Cap of $60 as Ban Begins on Russian Seaborne Oil
Re: Indian Economy News & Discussion - Nov 27 2017
UPI transactions see 650% rise at semi-urban,rural stores.
The unified payments interface (UPI) transactions witnessed a meteoric 650 per cent rise at the semi-urban and rural stores in India this year, a report showed on Tuesday.
There was a growth of 25 per cent and 14 per cent in value and volume, respectively, in assisted financial transactions across semi-urban and rural retail counters in the country in 2022, according to the report by branchless banking and digital network PayNearby.
While there was a 25 per cent increase in the demand for micro-ATMs and mPOS instruments, the EMI collections for financial institutions and NBFCs saw a steep growth of over 200 per cent.
However, there has been a slight dip in the average cash withdrawal per transaction, from Rs 2,620 in 2021 to Rs 2,595 in 2022.
"Bharat is aspirational, and the increased off-take of green shoot services like assisted commerce, OTT subscription, micro-lending validates our commitment to make these services easily available at a store nearby," said Anand Kumar Bajaj, Founder, MD and CEO, PayNearby.
This indicates a behavioural shift in the consumers in these regions, with more citizens adopting assisted digital means for their banking and lifestyle requirements and getting incorporated into the formal economy, the report mentioned.
The report also indicated a sharp growth of over 200 per cent in the cash collection business (including EMIs) with a monthly average of Rs 1,400 crore, indicating demand for lending and other financing solutions, bouncing back to the pre-pandemic levels.
"We have serviced close to Rs 70,000 crore of digital services in the first 10 months of this calendar year and the steady growth of cash withdrawal business, together with the fast track adoption of some of these green shoot services indicate a steady recovery of our economy post the devastating impact of the pandemic," said Bajaj.
Re: Indian Economy News & Discussion - Nov 27 2017
India set to export mobile phones worth US$ 9 bn in FY23
https://indbiz.gov.in/india-set-to-expo ... n-in-fy23/
https://indbiz.gov.in/india-set-to-expo ... n-in-fy23/
Exports of mobile phones in India have crossed the US$ 5 billion mark in the April-October period of FY23, compared to US$ 2.2 in the same period last year. Due to the introduction of Production-Linked Incentive (PLI) schemes, an ecosystem for manufacturing electronics has been developed, and growth in exports has been witnessed.
Re: Indian Economy News & Discussion - Nov 27 2017
Indian traders want risk free 15% year on year.
This is what separates CHN manufacturers from IND traders. CHN invest in scale upfront and take volume risk.
IND traders want volumes first and investment later despite having huge order flow and abundant funding
Re: Indian Economy News & Discussion - Nov 27 2017
https://www.livemint.com/news/india/ind ... 55303.html
The minister said that due to government’s efforts, defence exports have now crossed ₹14,000 crore, as compared to ₹900 crore in 2014. He exuded confidence that, “by 2023, defence exports will cross ₹19,000 crore and we are well on course to achieve the target of ₹25,000 crore worth of exports by 2025."
India’s defence exports recorded nearly a six-fold increase between 2017 and 2021, shooting up from ₹1,520 crore to ₹8,435 crore during that period, according to defence ministry data.
Re: Indian Economy News & Discussion - Nov 27 2017
Kaivalya wrote:https://www.livemint.com/news/india/ind ... 55303.html
The minister said that due to government’s efforts, defence exports have now crossed ₹14,000 crore, as compared to ₹900 crore in 2014. He exuded confidence that, “by 2023, defence exports will cross ₹19,000 crore and we are well on course to achieve the target of ₹25,000 crore worth of exports by 2025."India’s defence exports recorded nearly a six-fold increase between 2017 and 2021, shooting up from ₹1,520 crore to ₹8,435 crore during that period, according to defence ministry data.
What would be breakup system wise for this 8435 crore figure?
Re: Indian Economy News & Discussion - Nov 27 2017
https://www.business-standard.com/artic ... 839_1.html
Retail inflation drops to 11-month low of 5.88%; factory output drops
This is the first time in 11 months that the retail inflation print has come within the RBI's tolerance band of 4% (+/-2%)
Retail inflation drops to 11-month low of 5.88%; factory output drops
This is the first time in 11 months that the retail inflation print has come within the RBI's tolerance band of 4% (+/-2%)
Retail inflation fell to an 11-month low of 5.88 per cent in November, mainly due to softening prices of food items, official data showed on Monday.
This is the first time in 11 months that the retail inflation print has come within the RBI's tolerance band of 4 (+/- 2) per cent.
The consumer price index (CPI) based retail inflation was 6.77 per cent in October 2022, and 4.91 per cent in November last year.
As per the data released by the National Statistical Office (NSO), inflation in the food basket was 4.67 per cent in November, against 7.01 per cent in the previous month.
After remaining above the Reserve Bank's upper tolerance threshold of 6 per cent since January, retail inflation has declined to its lowest level in 11 months. In December 2021, the retail inflation stood at 5.66 per cent.
Re: Indian Economy News & Discussion - Nov 27 2017
x posted from the political thread
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Re: Indian Economy News & Discussion - Nov 27 2017
This is great news, no doubt! But it will be good to see a breakdown of how much of these exports are part of offset obligations that get categorized as exports to the foreign OEM. It will be good to separate milk from waterKaivalya wrote:https://www.livemint.com/news/india/ind ... 55303.html
The minister said that due to government’s efforts, defence exports have now crossed ₹14,000 crore, as compared to ₹900 crore in 2014. He exuded confidence that, “by 2023, defence exports will cross ₹19,000 crore and we are well on course to achieve the target of ₹25,000 crore worth of exports by 2025."
Re: Indian Economy News & Discussion - Nov 27 2017
Indian refineries are exporting 170,000 barrels per day to Europe after refining Russian oil it seems.
Re: Indian Economy News & Discussion - Nov 27 2017
Sri Lanka to use Indian rupee for international trade, more countries aim to follow
Days after the Central Bank of Sri Lanka (CBSL) said that it was awaiting the Reserve Bank of India's (RBI) approval to designate Indian Rupee (INR) as a foreign currency in Sri Lanka, reports have emerged saying banks from India's neighbouring island nation have opened special rupee trading accounts, called Vostro accounts.
Sri Lanka had requested the RBI to facilitate and promote trade and tourism in the SAARC region.
What does it mean?
It means that Sri Lankan citizens can now hold $10,000 (INR 8,26,823) in physical form. This also means that Sri Lankans and Indians can use Indian rupees instead of US dollars for international transactions with each other. The Indian government since July this year, has been looking to bring countries that are short of dollars, into its rupee settlement mechanism.
Special rupee accounts for international transactions between designated countries are called Vostro accounts.
Why Sri Lanka is keen to trade in INR?
This is because designating INR as a legal currency in Sri Lanka will provide the country with much-needed liquidity support to help it tide over its economic crisis amid inadequate availability of the US dollar.
With a foreign currency (in Sri Lanka's case the INR), the country's economy is more likely to prevent further intensification of the balance of payments crisis when the investors begin selling off in domestic currency.
India's efforts for Rupee's internationalisation?
So far, India's central bank has given approval to banks to open 12 Vostro accounts for trade in rupees with Russia. Six other accounts, including five for trade with Sri Lanka and one for trade with Mauritius, have also been authorised, a Reserve Bank of India document cited by Economic Times showed. Countries such as Tajikistan, Cuba, Luxembourg and Sudan, too, reportedly are in talks about using the rupee settlement mechanism.
India's finance ministry has also asked the Indian Banks’ Association (IBA) and the Federation of Indian Export Organisations (FIEO) to begin an awareness campaign to sensitise stakeholders about the rupee trade.
The Reserve Bank of India in July had notified the new mechanism for settling international trade in the rupee. This was aimed at not just reducing the rupee against the dollar but also internationalising the Indian currency.
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Re: Indian Economy News & Discussion - Nov 27 2017
Impressive. Why would Luxembourg be interested?
Re: Indian Economy News & Discussion - Nov 27 2017
They are a tax haven, makes sense to have foreign currency holdings in ₹,¥,$ etcsanjaykumar wrote:Impressive. Why would Luxembourg be interested?
Re: Indian Economy News & Discussion - Nov 27 2017
Allowing physical Rupee cash to be held in Sri Lanka will make it a counterfeit conduit for TSP.
RBI should only allow Digital Rupee (e₹) or Rupee holdings in e-wallets.
RBI should only allow Digital Rupee (e₹) or Rupee holdings in e-wallets.
Re: Indian Economy News & Discussion - Nov 27 2017
Looks like Russia is giving Ural crude for $48 per barrel. India is refining and supplying to Europe.
SuSu's daughter says Reliance is benefiting heavily because of this but Modi is not giving this to state run Oil companies.
SuSu's daughter says Reliance is benefiting heavily because of this but Modi is not giving this to state run Oil companies.
Re: Indian Economy News & Discussion - Nov 27 2017
Can the public sector refineries handle russian urals?also how much?vijayk wrote:Looks like Russia is giving Ural crude for $48 per barrel. India is refining and supplying to Europe.
SuSu's daughter says Reliance is benefiting heavily because of this but Modi is not giving this to state run Oil companies.
Re: Indian Economy News & Discussion - Nov 27 2017
Reliance's Jamnagar Refinery (comprising of 2 separate units) is the biggest oil refinery in the world and it's Nelson Complexity index is a huge 21.1 (which means they can refine & process the most difficult type crude oil, which comes at cheaper cost, & produce petrol, diesel, ATF & sell them at higher profit margins). The Nayara Energy Refinery (erstwhile Essar Oil) in Gujarat again - mostly owned by Rosneft of Russia & a few external private entities - has a Nelson Complexity Index of 12.8 and is also doing the same. Even IOC's Paradip refinery in Orrisa and HPCL's Bhathinda Refinery have similar complexity index and hence they should also be able to process medium quality crude oil which we are getting from Russia.vijayk wrote:Looks like Russia is giving Ural crude for $48 per barrel. India is refining and supplying to Europe.
SuSu's daughter says Reliance is benefiting heavily because of this but Modi is not giving this to state run Oil companies.
Reliance being reliance - will extract advantage on the purchase side of crude oil as well as on the sales side of its refined products side.
IOCL has been buying the Russian Urals blend of crude oil recently.
But central government has been imposing windfall profit tax on all refiners & Indian crude oil/gas producers like ONGC, OIL & etc.
Re: Indian Economy News & Discussion - Nov 27 2017
The attacks will come like this
1. Ambani is making huge profits by selling it to Europe but not Indians
2. Govt. Cut windfall taxes
3. The Russian oil is going to reliance while higher priced Iraqi oil going to state owned companies
1. Ambani is making huge profits by selling it to Europe but not Indians
2. Govt. Cut windfall taxes
3. The Russian oil is going to reliance while higher priced Iraqi oil going to state owned companies
Re: Indian Economy News & Discussion - Nov 27 2017
November 16, 20229:01 PM ESTLast Updated a month ago
India raises windfall tax on crude oil
https://www.reuters.com/business/energy ... 022-11-16/
https://economictimes.indiatimes.com/in ... 266348.cms
ET OnlineLast Updated: Dec 16, 2022, 09:31 AM IST
India cuts windfall tax on crude, aviation fuel
Read more at:
https://economictimes.indiatimes.com/in ... aign=cppst
I think Govt. is right ... Very dynamic with pricing
As the global prices go up and down, Govt. is fine tuning but this will be spun as Adani/Ambani nonsense
Hope they have better communication when this issue is raised
India raises windfall tax on crude oil
https://www.reuters.com/business/energy ... 022-11-16/
India has raised a windfall tax on crude oil to 10,200 Indian rupees ($125.22) per tonne from 9,500 rupees per tonne, a government order said on Wednesday.
India has also cut export tax on diesel to 10.50 rupees per liter from 13 rupees per liter, the order said.
($1 = 81.4570 Indian rupees)
https://economictimes.indiatimes.com/in ... 266348.cms
ET OnlineLast Updated: Dec 16, 2022, 09:31 AM IST
India cuts windfall tax on crude, aviation fuel
Read more at:
https://economictimes.indiatimes.com/in ... aign=cppst
The Centre on Friday cut the windfall profit tax on domestically produced crude oil and also reduced the levy on aviation turbine fuel exports. The revised tax rates become effective from December 16, 2022.
The tax on crude oil produced by local firms has been reduced to Rs 1,700 per tonne from the existing Rs 4,900 per tonne, as per government notification.
The special additional excise duty on petrol continues to remain unchaged at ‘Nil’, while windfall tax on high-speed diesel for exports has been reduced to Rs 5 per litre from Rs 8 earlier.
Government slashes windfall tax on diesel, ATF | The tax on domestic crude oil export has been reduced to Rs 1,700 per tonne from the existing Rs 4,900 per tonne, as per government notification. Tax on ATF has been reduced to Rs 1.5 per litre from Rs 5 per litre.
The move comes amid a 14% slump in global crude since November. India is the world's third largest consumer and importer of oil.
I think Govt. is right ... Very dynamic with pricing
As the global prices go up and down, Govt. is fine tuning but this will be spun as Adani/Ambani nonsense
Hope they have better communication when this issue is raised
Last edited by vijayk on 20 Dec 2022 22:09, edited 1 time in total.
Re: Indian Economy News & Discussion - Nov 27 2017
another tariff wall
Re: Indian Economy News & Discussion - Nov 27 2017
vijayk wrote:The attacks will come like this
1. Ambani is making huge profits by selling it to Europe but not Indians
2. Govt. Cut windfall taxes
3. The Russian oil is going to reliance while higher priced Iraqi oil going to state owned companies
Nobody is listening except the woke circular j*** gang , let the rockstar economist and Nuevo Karl Marx live in their fantasy land
Re: Indian Economy News & Discussion - Nov 27 2017
https://economictimes.indiatimes.com/ne ... te]Exports to Tanzania have grown three times to $2.4 billion in the ongoing fiscal so far. Over 80 per cent in exports from India are on account of more petrol and diesel shopped to the African nation.
While India's total exports have risen 12.5 per cent to over $263 billion, oil product exports have soared around 70 per cent.
While several countries have reduced their dependence on Russia-refined oil products, India, which has seen a sharp spike in crude imported from Russia, is seen to be processing it and exporting to many countries, especially in Europe.
Read more at:
https://economictimes.indiatimes.com/ne ... aign=cppst
[/quote]
While India's total exports have risen 12.5 per cent to over $263 billion, oil product exports have soared around 70 per cent.
While several countries have reduced their dependence on Russia-refined oil products, India, which has seen a sharp spike in crude imported from Russia, is seen to be processing it and exporting to many countries, especially in Europe.
Read more at:
https://economictimes.indiatimes.com/ne ... aign=cppst
[/quote]
Imports rose 5. 4 per cent to USD 55. 9 billion in November as compared to $53 billion in the corresponding month a year ago, the data showed. Trade deficit widened to $23. 9 billion during November month.
India's overall export, which included both merchandise and services, stood at USD 58.22 billion in November, which showed a 10 per cent growth over the same period last year.
Re: Indian Economy News & Discussion - Nov 27 2017
I hope India keeps the foot on the export pedal and surpass dragon in 2023.
I read the data incorrectly both the figures are incorrect.
But Chinese numbers are as fake as their vaccines that I'm sure.
Last edited by vimal on 25 Dec 2022 11:18, edited 1 time in total.
Re: Indian Economy News & Discussion - Nov 27 2017
err.... China's $296B figure is for the month of November 2022 only whereas India's figure of $263B is for the year. China exports more in a month than what India exports in a year.vimal wrote:China is exporting $296b and India is at $263b so far in 2022.
I hope India keeps the foot on the export pedal and surpass dragon in 2023.
Re: Indian Economy News & Discussion - Nov 27 2017
Cross Posting
India’s Finance Minister Sitharaman Hospitalized, PTI Says
India’s Finance Minister Sitharaman Hospitalized, PTI Says
(Bloomberg) -- India’s Finance Minister Nirmala Sitharaman was admitted to the All India Institute of Medical Sciences in New Delhi on Monday, Press Trust of India reported, citing unnamed people.
The 63-year-old was taken to the hospital around noon and is in a private ward, the news agency said. News agency ANI said she was admitted for a routine check-up.
A finance ministry spokesman declined to comment when contacted by Bloomberg News.
Her hospital visit comes just weeks before the presentation of the federal budget on Feb. 1. It is expected to be the final full-year budget before the nation heads for a general election in the summer of 2024.
Re: Indian Economy News & Discussion - Nov 27 2017
India plans to democratize online shopping and delivery of goods
https://www.ft.com/content/b1bc25c5-43c ... 66c7cb5ba1
I hope ONDC will replicate the success that UPI is today
https://www.ft.com/content/b1bc25c5-43c ... 66c7cb5ba1
I hope ONDC will replicate the success that UPI is today
Re: Indian Economy News & Discussion - Nov 27 2017
Billionaire Adani Says India Will Add $1 Trillion to GDP Every 12-18 Months
(Bloomberg) -- Asia’s richest man Gautam Adani is betting big on India’s growth and believes the country will add a trillion dollars to its GDP every 12 to 18 months within the next decade given its large middle class and young population.
Adani also said that New Delhi Television Ltd., his latest acquisition, would remain editorially independent. The deal had stoked worries about muzzling media freedom because NDTV is seen as one of the few news outlets relatively critical of Indian Prime Minister Narendra Modi’s administration. Adani has often dovetailed his corporate strategy to the Modi government’s initiatives and nation-building priorities.
“On editorial independence, let me say categorically that NDTV will be a credible, independent global network,” Adani said during the interview.
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Re: Indian Economy News & Discussion - Nov 27 2017
I read with interest the post on the border carbon tax. The use of tariffs to further social agenda. Or, equally, the other way around.
To pay for European destruction of the environment.
India and China perhaps may pioneer a colonisation tax on European goods and services. To again compensate for past European actions.
To pay for European destruction of the environment.
India and China perhaps may pioneer a colonisation tax on European goods and services. To again compensate for past European actions.
Re: Indian Economy News & Discussion - Nov 27 2017
Brilliant. I hope it goes mainstream. Can someone pls. ping EAM S. Jaishankar.sanjaykumar wrote:...
India and China perhaps may pioneer a colonisation tax on European goods and services. To again compensate for past European actions.
Re: Indian Economy News & Discussion - Nov 27 2017
How ONGC’s operations in Puga valley can change the fate of Ladakh
December 24, 2022 - Updated 09:06 am IST
The discovery of hot water below the ground has potential to make Ladakh self-sufficient in energy
Come April, ONGC, India’s premier oil and natural gas company, will begin its second campaign in Puga valley, some 180 km south east of Leh, the capital of Ladakh. The first campaign began on August 2, 2022, when its drill bit broke the rocky Puga ground and began boring down.
But unlike elsewhere, the hydrocarbon producer is not looking for oil or gas here, nor would it drill as deep as it typically does. Yet, the success of first of its kind campaign in India means a lot to the region and the country.
The idea was to drill well a kilometer into the ground so that the very hot water underneath could gush up to the surface.
Notably, the ONGC succeeded in its mission at just 40 meters when a ‘blowout’ happened. The result was a piping hot water fountain, some 50 feet high.
By all accounts, it was a glorious sight and brought smiles to the ONGC engineers there, but not just because it was a beautiful spectacle to behold. It was a conclusive proof for the geothermal potential of Puga valley. Even at 40 meters, they got waters at 130 degrees Celsius. Now they are sure that at the target depth of 1,000 meters, water as hot as 220 degrees Celsius would spring up to greet them.
Nawang Thinless, a renewable energy expert in Leh who recently won a ‘Business Leader of the Year-2022’ award from the Gulf Cooperation Council, Dubai, is the coordinator for ONGC’s project. He told this writer that the Ladakh has potential of about 200 MW of geothermal plants. ONGC’s Ravi said that if Puga and Chumathang were connected underground, the potential could be even higher.