China no threat to India's overseas energy interests: Dharmendra Pradhan

NEW DELHI: India does not feel threatened by China over sourcing oil and gas from around the world and has its own strategy based on the strength of its "huge credibility factor" and the weight of its rapidly expanding energy market, oil minister Dharmendra Pradhan said on Thursday.

According to Pradhan, both India and China are driven to resource-rich countries by different strategy and requirements. "I don't see any conflict of interest with China as far as sourcing of energy is concerned. They have their own strategy, their own requirement. We have our own requirement, strategy. They have deep pockets. We have huge credibility factor with us," Pradhan said at the 4th Times Network India Economic Conclave here.

The two neighbours have often competed fiercely for oil and gas fields in the past but also partnered in several third-country projects, which have continued to function through diplomatic or military stand-offs over territorial claims. The two have also fought a war in 1962.

Asked whether any "unpleasant" face-off in future could compromise India's strategic energy interests, the oil minister said: "In the international diplomatic arena, we are present in Russia, they are in Russia. Both of us are in African countries. In the Middle-East countries, we have our links, they have theirs. I don't see any threat from any one."

To put things in context, Pradhan said all major producers looked for an uninterrupted supply (export) chain to ensure growth of their domestic economy. "Today India offers a huge assured market, a robust market. That is the factor to leverage from our side," he said.

India is the third largest oil consumer in the world after the US and China. It is poised to emerge as a huge energy market and is seen driving incremental growth in demand in the world for the next 25 years.

On the challenges to India's energy interests posed by China's belligerence or expansionist ambitions in the South China sea, Pradhan said any diplomatic relation has its own challenges but there was no threat (to India's energy interests).

Pradhan said the government was following a four-pronged strategy to reduce oil imports by 10% by 2022 set by PM Narendra Modi. The country now depends on imports for meeting 82% of its requirement for crude, which is expected to rise to over 90%.

The strategy, according to Pradhan is to raise domestic production through a series of policy and market reforms; look at new age energy resources, mobility and technology; increase efficiency and promote conservation.