Non-Life Insurance Crisis: 68% of Claims Unpaid, Policyholders of Bangladesh in Distress

A worrying trend has surfaced in Bangladesh’s non-life insurance sector. According to data released by the Insurance Development and Regulatory Authority (IDRA), nearly 68% of insurance claims remained unpaid by the end of 2024.

Out of the total Tk3,582.89 crore worth of claims filed during the year, only Tk1,481.63 crore (41%) was paid. This has left policyholders grappling with unresolved claims worth approximately Tk2,635 crore.

Comparison with Previous Year Shows Declining Performance

The claim settlement ratio in 2024, although marginally improved, still reflects significant underperformance. In 2023, only 32% of claims were settled — Tk1,237.40 crore out of total claims of Tk3,871.92 crore. Despite the slight increase in payout ratio in 2024, the absolute number of unpaid claims remains alarmingly high.

Policyholders Suffer Amid Financial Uncertainty

Many individuals who placed their trust in insurance policies for financial protection are now facing hardship. The delayed settlements have resulted in severe distress, with some policyholders struggling to cover losses from accidents, property damage, and other insured events. 

As per the existing law, claims should be settled within 90 days. However, this provision is frequently overlooked, exacerbating the suffering of the insured.

IDRA Vows Action Against Defaulting Insurers

In response to the rising volume of unsettled claims, IDRA is planning to take disciplinary steps. A governance review meeting is expected to be held soon with the directors of insurance companies demonstrating poor claim settlement records. 

The authority aims to hold insurers accountable and improve transparency and trust in the sector.

Reinsurance Delays Blamed for the Bottleneck

Insurers cite reinsurance delays as a primary obstacle. By law, 50% of non-life policies must be reinsured through Sadharan Bima Corporation (SBC), while the rest can be placed with foreign reinsurers. However, insurers claim that SBC’s slow settlement process hinders their ability to promptly reimburse policyholders. In contrast, foreign reinsurers are known for relatively quicker claim settlements.

Some Insurers Paying from Own Funds

To maintain goodwill and reputation, a few insurers have reportedly been settling claims from their own reserves, even while waiting for reimbursements from reinsurers. This practice, though commendable, is not sustainable across the board, especially for companies with weaker financial positions.

SBC Highlights Challenges in the Reinsurance Chain

SBC has responded by attributing delays to procedural issues. According to their communication with IDRA, incomplete documentation and late premium payments by insurers are often the root causes of delayed settlements. This points to a systemic issue involving both the insurers and reinsurers.

Conclusion

The current situation in Bangladesh’s non-life insurance sector raises concerns about operational inefficiencies, regulatory compliance, and policyholder protection. While IDRA’s proposed interventions may offer hope, restoring faith in the insurance ecosystem will require structural reforms, improved governance, and timely coordination among all stakeholders.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Homeowners Rejoice: ITAT Rules Redeveloped Property Not Taxable as ‘Other Income’

In a landmark decision that brings clarity to thousands of homeowners involved in redevelopment projects, the Income Tax Appellate Tribunal (ITAT) has ruled that a flat received in exchange for an old one should not be taxed as ‘Income from Other Sources’. This interpretation falls under Section 56(2)(x) of the Income Tax Act and marks a pivotal moment for property owners in cities like Mumbai, where redevelopment is a pressing necessity.

Background of the Case: A. Pitale vs. Income Tax Officer

The case in question involved a taxpayer, A. Pitale, who had purchased a flat in a housing society back in 1997–98. When the society underwent redevelopment, Pitale received a new flat in December 2017. However, the assessing officer treated the difference between the stamp duty value of the new flat (₹25.1 lakh) and the indexed cost of the old flat (₹5.4 lakh), a sum of ₹19.7 lakh, as taxable income under the head ‘Other Sources’.

The ITAT, however, set aside this view. It recognised the transaction as a case of extinguishment of rights and not as a case of the taxpayer receiving immovable property for inadequate consideration. As such, it ruled in favour of the taxpayer.

Redevelopment: A Growing Reality in Urban India

Redevelopment has become an inevitable solution in land-constrained cities like Mumbai, where vertical expansion is the only way to accommodate growing housing demand. Similarly, other cities, including Delhi, have started focusing on redevelopment to rejuvenate old residential clusters.

For instance, the Municipal Corporation of Delhi, in collaboration with HUDCO, has announced redevelopment plans for model flats in areas like Minto Road, Azadpur, and Model Town. Such initiatives are indicative of the widespread adoption of redevelopment as a tool for urban renewal.

Why Is This Ruling Important?

This ruling provides clarity for both taxpayers and developers. Until now, there was uncertainty about the taxability of receiving a new flat in a redevelopment project. By recognising that the transaction does not fall under the purview of Section 56(2)(x), the ITAT has effectively removed the ambiguity that could have led to undue taxation.

This decision reinforces the principle that when an old property is surrendered and a new one is allotted in its place, it is not a case of additional income but a replacement of rights.

Points to Keep in Mind for Homeowners

While this judgment brings relief from taxation under the ‘Other Sources’ category, it is important to note that capital gains tax provisions still remain applicable. If the redeveloped property is sold in the future, homeowners will be liable to pay capital gains tax based on the cost of acquisition and the period of holding.

Hence, documentation and accurate record-keeping regarding the original acquisition cost and the date of ownership will remain crucial for calculating future tax liabilities.

A Step Forward in Tax Clarity

This decision by the ITAT serves as a much-needed clarification in the domain of real estate taxation. It sets a precedent for similar cases and helps streamline the taxation treatment of redevelopment transactions. For homeowners in redevelopment-prone cities, this is a significant relief and a step towards equitable taxation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

US Government Cancels ₹44,000 Crore in IT Contracts: IT Majors TCS and Infosys Not in the List

In a landmark announcement that has rippled across the global IT landscape, the United States government has cancelled outsourcing contracts worth $5.1 billion (~₹44,000 crore). These contracts, predominantly with large consulting firms, were classified as “non-essential spending” and terminated under a new cost-optimisation drive led by US Defence Secretary Pete Hegseth.

The terminated projects were primarily associated with the Pentagon and related federal departments, and their cessation is part of a broader movement to reduce reliance on third-party consultants for tasks that could be performed internally by government personnel.

Accenture and Deloitte Among the Hardest Hit

Among the key casualties of this decision are global consulting heavyweights Accenture and Deloitte. These firms were reportedly handling major contracts linked to defence and administrative digital infrastructure. The decision has not only led to the cancellation of current contracts but also sets a precedent for how future government outsourcing may be approached.

US Defence Secretary Hegseth termed the cancelled contracts “wasteful spending,” suggesting that nearly $4 billion in government funds could be saved through this measure alone.

Indian IT Firms TCS and Infosys Remain Unscathed—For Now

Interestingly, Indian IT behemoths such as Tata Consultancy Services (TCS) and Infosys were not listed among the impacted vendors. While this development provides a temporary cushion for Indian investors and stakeholders, the broader message from the US administration hints at a possible re-evaluation of all outsourced engagements, regardless of geography.

The decision does not directly affect Indian companies at present, but the sentiment driving the cancellations could have implications for future bids and renewals of government contracts.

Elon Musk Applauds Government Efficiency Measures

Billionaire entrepreneur Elon Musk voiced his support for the Department of Government Efficiency (DOGE), the task force responsible for spearheading this cost-cutting initiative. Speaking at a recent cabinet meeting at the White House, Musk lauded the move and projected potential federal savings of up to $150 billion in FY2026 through DOGE’s optimisation efforts.

Musk has previously argued that DOGE could uncover up to $1 trillion in overall savings. While he has also actively campaigned against tariffs, his economic advisories have not altered the Trump administration’s trade policies.

A Turning Point for the IT Consulting Industry

The cancellation of such large-scale contracts signals a pivotal moment in how the United States, one of the largest consumers of outsourced IT services, intends to handle digital transformation initiatives moving forward. The trend appears to be shifting from outsourcing to in-sourcing, as government departments look to develop internal capabilities.

For companies heavily reliant on US federal contracts, this move presents a significant strategic challenge. The new paradigm demands that consulting firms, both global and Indian, rethink their value propositions, emphasise cost-efficiency, and potentially diversify their client base beyond government projects.

Conclusion

While Indian IT majors like TCS and Infosys have managed to escape immediate impact, the broader signals from the US government point to a more cautious and cost-conscious approach in federal spending on IT services. This shift could reshape the contours of the global consulting market, urging service providers to become more agile, innovative, and resilient in a rapidly evolving environment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Surgery Costs in India Jump 300% in a Decade: Why Adequate Health Insurance Matters

Over the past 10 years, surgery costs in India have witnessed an unprecedented rise, increasing by 250% to 300%, according to a recent analysis by Policybazaar. This surge has left a significant section of the population financially vulnerable when faced with medical emergencies. Whether it’s advanced surgeries or routine procedures, almost every treatment has seen a sharp rise in cost.

Major Surgeries Now Cost Upwards of ₹50 Lakh

Some of the most advanced and critical medical procedures — such as heart transplants, kidney and liver treatments, and cancer surgeries — have become significantly more expensive. For instance, a cancer surgery that cost ₹13.5 lakh in 2013 now amounts to ₹50.8 lakh in 2024. Similarly, the cost of a heart transplant has climbed from ₹9.8 lakh to over ₹34 lakh during the same period.

These steep increases reflect not only medical inflation but also technological advancements, including robotic-assisted surgeries and AI-integrated procedures, which have improved outcomes but escalated expenses.

Even Routine Surgeries Are No Longer Affordable

The spike in healthcare costs hasn’t been limited to life-saving treatments. Common surgeries such as cataract removal and hernia repair have also become more expensive. Cataract surgery, for example, has increased from ₹35,000 in 2016 to ₹1.26 lakh in 2025 — nearly a fourfold rise.

This trend demonstrates that even seemingly minor medical interventions can now impose a significant financial burden, particularly for individuals without health insurance.

Emotional and Financial Toll on Uninsured Families

One of the more concerning aspects highlighted in the report is the emotional and financial toll on families who remain uninsured. In the face of unexpected medical costs, many delay treatment, deplete savings, or resort to high-interest loans. This not only affects the patient’s recovery but also pushes households into long-term financial distress.

According to the survey, around 75% of Indians still pay for healthcare out of pocket — a figure that underscores the lack of financial protection for the majority of the population.

Health Insurance Plans: An Evolving Safety Net

As medical inflation continues to outpace general inflation in India, the role of health insurance is becoming more prominent. A comprehensive health cover of ₹1 crore for a couple aged 35 in Delhi now costs around ₹2,000–2,500 per month, approximately ₹24,000 to ₹30,000 annually.

Such plans typically provide cashless hospitalisation, organ transplant cover, chemotherapy, robotic surgeries, mental health benefits, and even outpatient department (OPD) care. With healthcare rapidly evolving, such features are becoming essential rather than optional.

Conclusion

With the growing adoption of AI-based diagnostics, robotic surgery tools, and advanced treatment protocols, healthcare in India is undergoing a technological revolution. However, this evolution comes at a cost — one that is increasingly being passed on to the patient.

The report suggests that delaying or avoiding investment in health coverage may result in far greater financial strain than the cost of regular insurance premiums. As the healthcare landscape advances, the cost of inaction could potentially prove much higher than one anticipates.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Hindustan Oil Exploration Shares Rise 3% on Strategic Acquisition of Block B15 in Mumbai

Hindustan Oil Exploration Company Limited (HOEC), a significant player in India’s energy sector, has furthered its operational footprint with the successful acquisition of Block MB/OSDSF/B15/2024. 

Awarded under the Special Discovered Small Fields (SDSF) Bid Round 2024, this achievement reflects HOEC’s continued focus on augmenting its hydrocarbon reserves and enhancing shareholder value. 

The official announcement was made through a formal communication to the stock exchanges on 16 April 2025.

Significance of the Block B15 Acquisition

The newly acquired Block MB/OSDSF/B15/2024 spans 332.4 square kilometres in the Mumbai Offshore basin, lying at a shallow water depth of approximately 40 metres.

This block encapsulates two significant discoveries: B-15A-1 and B-15-2 both of which have demonstrated substantial production potential. Six wells have been drilled in this block, with B-15A-1 yielding 1.66 million standard cubic feet per day of gas and 1833 barrels of oil per day, while B-15-2 tested 1151 barrels of oil and 0.91 mmscfd of gas from the Panna formation.

The company holds a 100% participating interest and acts as the operator for this block. This exclusive operational control is likely to streamline decision-making and maximise the efficiency of future exploration and development activities.

Strategic Alignment with HOEC’s Growth Objectives

The award of Block B15 adds significant value to HOEC’s offshore portfolio, particularly as it complements the company’s existing Block MB/OSDSF/B80/2016 in the same region. 

With this addition, HOEC’s total operational area in Mumbai Offshore surpasses 800 square kilometres. This geographic and operational consolidation is poised to unlock new exploration avenues and strengthen the company’s resource base.

Managing Director Mr Ramasamy Jeevanandam emphasised the company’s dedication to operational excellence and long-term asset development. The focus remains on capitalising on existing discoveries while also exploring untapped reserves, thereby driving sustainable growth and value creation for stakeholders.

HOEC Share Performance 

As of April 16, 2025,12:20 PM, HOEC Share Price is trading at ₹176.03, reflecting a 3.04% surge from the previous closing price. Over the past month the stock has surged by 3.72%.

Conclusion

The acquisition of Block MB/OSDSF/B15/2024 marks a significant milestone in HOEC’s journey of growth and exploration. With robust production data, full operational control, and strategic alignment with existing assets, the company is well-positioned to reinforce its presence in India’s offshore oil and gas sector.

This expansion not only boosts HOEC’s reserves but also underscores its vision of becoming a leading independent energy company.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Max India Board Approves Fundraise of ₹125 Crores Via Right Issue

On 15 April 2025, Max India Limited convened a Board meeting that resulted in two major decisions: the approval of a promoter reclassification request and the proposal to raise capital through a rights issue. 

These decisions align with regulatory requirements and reflect the company’s evolving governance structure and financial planning.

Change in Shareholding: Promoter Reclassification Approved

The Board approved a request from Ms Neelu Analjit Singh to reclassify her status from ‘Promoter and Promoter Group’ to ‘Public’. This move follows a Settlement Agreement dated 13 January 2025 between Ms Singh and Mr Analjit Singh, which led to the segregation of their assets and confirmed that control of the company remains with Mr Singh and other existing promoters.

Additionally, this change was prompted by a legal dissolution of marriage between Ms Neelu Singh and Mr Analjit Singh, as decreed by the Hon’ble Patiala House Court, Delhi on 19 February 2025. As a result, Ms Singh is no longer classified as Mr Singh’s spouse, further supporting the reclassification request. The transition will now proceed subject to necessary approvals from the stock exchanges, in line with Regulation 31A(3) of the SEBI Listing Regulations.

Capital Expansion Plan: ₹125 Crore Rights Issue Announced

In a separate but equally significant move, the Board approved raising up to ₹125 crore by issuing equity shares of face value ₹10 each via a rights issue. This offer will be extended to eligible shareholders as of the record date, which is yet to be determined. The initiative is subject to regulatory approvals under the SEBI ICDR Regulations and other applicable laws.

Details such as the issue price, entitlement ratio, and payment terms will be decided in due course. The proposed rights issue is a strategic decision aimed at bolstering the company’s capital base and supporting its future operational goals.

Max India Share Performance 

As of April 16, 2025, at noon, Max India Share Price is trading at ₹234, reflecting a 16.81% surge from the previous closing price. Over the past month, the stock has surged by 31.70%.

Conclusion

The Board meeting on 15 April 2025 marked a pivotal point for Max India Limited. With the reclassification of a key shareholder and a substantial capital-raising plan, the company is set to move forward with a restructured governance framework and a stronger financial foundation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Electricity Derivatives Launch: Top Exchanges Approach SEBI to Seek Approval

The Indian energy sector may soon witness a significant transformation with the possible launch of electricity derivative contracts. Leading stock exchanges, the Multi Commodity Exchange (MCX) and the National Stock Exchange (NSE), have submitted proposals to the Securities and Exchange Board of India (SEBI), seeking regulatory approval to begin trading in such instruments. This development aligns with SEBI’s recent collaboration with the Central Electricity Regulatory Commission (CERC) and reflects an evolving market structure designed to offer new risk management tools.

Financial Derivatives to Hedge Power Price Fluctuations

The proposed contracts are financial in nature and will be settled in cash, initially focusing on monthly tenures. These instruments are expected to offer significant benefits to electricity distribution companies and major industrial consumers by allowing them to hedge against volatile power purchase prices. Based on the feedback from early adopters and market participants, the exchanges may later expand the contracts to include varied tenures.

While the proposals have been filed, both MCX and NSE have refrained from commenting publicly. Meanwhile, spot market leader Indian Energy Exchange (IEX) is unlikely to enter the derivatives space due to regulatory hurdles. IEX would be required to obtain a stock exchange license, demanding a minimum net worth of ₹100 crore, along with other compliance obligations. As an alternative, IEX and Power Exchange India Limited (PXIL) may consider partnerships with established exchanges to share spot market data for derivative pricing.

SEBI-CERC Joint Framework and Future Prospects

In February, SEBI issued a regulatory note confirming its understanding with CERC on the introduction of electricity derivatives. A joint working group comprising representatives from both bodies recommended the rollout of futures contracts, with exchanges instructed to submit fresh proposals adhering to standardised specifications.

While the industry has welcomed these steps, insiders believe that the future growth of this market hinges on the eventual introduction of Contracts for Difference (CfDs). These are long-term agreements that offer fixed prices, helping to mitigate price risks over extended periods. However, due to the complexities involved, regulatory approval for CfDs may still take several years.

Conclusion

The submission of proposals by MCX and NSE signals a pivotal moment for India’s energy and financial markets. With regulatory collaboration already underway, the introduction of electricity derivatives could open new avenues for hedging and price discovery, setting the stage for a more robust and mature energy trading ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

JSW Group Eyes ₹50,000 Crore Green Steel Investment for Europe

In a decisive statement of intent, JSW Group Chairman Sajjan Jindal has laid out a transformative blueprint for the company’s future, positioning JSW as a central force in India’s industrial ascent. As global trade dynamics shift away from China, Jindal believes JSW can spearhead India’s rise as the world’s next manufacturing hub. From combating unfair trade practices to investing massively in green steel and battery cell production, JSW is preparing to lead this new era with strategic clarity and industrial confidence.

Green Steel and Electric Future: JSW’s Next Leap

Aligning with global sustainability goals, JSW is now pivoting toward green steel production aimed at the European market. Jindal announced plans to invest between ₹50,000 crore to ₹60,000 crore over the next 4 years to establish a 10 million tonne per annum green steel facility. This plant will cater specifically to export demands while complying with the European Union’s carbon border tax regime.

JSW’s ambition also extends into the electric mobility space. Identifying battery cells as the only missing link in India’s EV ecosystem, Jindal revealed that JSW is working to localise their production. He added that the company is already collaborating with Chinese technology and in talks with Korean firms to develop and manufacture battery cells within India. “Technology is not so complicated. It’s available in Korea, Japan and China,” he said confidently.

Safeguarding Steel: JSW’s Fight Against Dumping

Jindal expressed deep concern over the growing volume of subsidised steel imports from China, particularly through Vietnam, calling it a direct threat to India’s steel sector. “Whatever comes to India comes via Vietnam, that also now the government is trying to stop,” he said, warning that these imports could cripple domestic momentum if unchecked.

To counter this, he confirmed that safeguard duties are imminent. The Commerce Ministry has already proposed a 12 per cent duty on specific steel products for a 200-day period. Jindal noted that while China can afford to sell at any price, Indian steelmakers must stay profitable to fund their expansion plans. “We have to make profits to redeploy that money to expand our capacity,” he stated, affirming JSW’s commitment to sustainable growth and fair competition.

Conclusion

JSW Group is not merely adapting to a changing global landscape; it is actively shaping it. Through aggressive investments, policy engagement, and a clear focus on sustainability and localisation, Sajjan Jindal has positioned JSW as a vital player in India’s industrial future. As India stands ready to step into China’s shoes, JSW is clearly leading the charge.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Ananya Birla Enters India’s Premium Cosmetics Market with LOVETC

Ananya Birla, under the Aditya Birla Group, has introduced a new premium cosmetics brand called LOVETC through Birla Cosmetics Pvt. Ltd. (BCPL). This move marks the company’s deeper entry into India’s beauty segment, especially after launching Contraband earlier this year. The aim is to offer high-quality, performance-driven colour cosmetics that are homegrown yet world-class.

Vision Behind the Brand

LOVETC reflects the brand’s mission to create a diverse and innovative beauty portfolio rooted in strong consumer insights and product excellence. Ananya Birla emphasised that luxury is defined by quality, not price, and LOVETC promises better-quality products at better prices. The initiative supports their broader vision of creating future-ready beauty offerings that cater to both Indian and global consumers.

India’s Growing Beauty Market

India’s cosmetic market was valued at $629.42 million in FY2024 and is expected to grow to $1.3 billion by FY2032. This rapid growth creates opportunities for new domestic brands to thrive. With a focus on capturing 5-8% of this market, LOVETC aims to establish a strong foothold in the premium segment of beauty products.

Product Line and Features

The launch collection from LOVETC includes high-performance lipsticks, long-lasting eyeliners and volumising mascaras, all developed with attention to quality, performance and consumer satisfaction. These products are crafted to meet global standards while maintaining affordability and accessibility for Indian consumers.

Marketing Strategy and Brand Ambassador

To enhance its brand visibility, LOVETC has onboarded Bollywood actress Janhvi Kapoor as its official brand ambassador. Her modern and elegant persona aligns with the brand’s identity, aiming to connect with aspirational and style-conscious consumers. This partnership is expected to boost brand recognition and engagement in the competitive Indian beauty market.

Conclusion

LOVETC is set to become a strong player in India’s expanding beauty industry. Ananya Birla’s vision of combining quality with affordability offers a refreshing approach to luxury. Backed by expert insights, a strategic mindset and celebrity support, the brand holds great promise for long-term success and consumer trust in the premium cosmetics space.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

ONGC, Reliance and BP Alliance Win Offshore Oil Block in Gujarat

For the first time ever, ONGC, Reliance Industries and global energy firm BP have teamed up to win an offshore oil exploration block in Gujarat. This consortium secured the GS-OSHP-2022/2 block located in the Saurashtra Basin as part of India’s ninth Open Acreage Licensing Policy (OALP-IX). ONGC holds a 40% stake, while Reliance and BP each own 30%. This strategic alliance is seen as a major step toward strengthening India’s energy independence.

OALP-IX: Key Highlights and Major Winners

The OALP-IX round offered 28 oil and gas blocks covering over 1.36 lakh square kilometres across various terrains. ONGC emerged as the biggest winner, bagging 15 blocks – 11 on its own and four through joint ventures. Vedanta Ltd, led by Anil Agarwal, won seven blocks despite bidding for all 28. Oil India Ltd also secured nine blocks, with six individual wins and three in partnership.

Government’s Push for Energy Reforms and Exploration

The government is continuing its drive to boost domestic exploration through policy reforms. During the contract signing ceremony, Union Petroleum Minister Hardeep Singh Puri launched the next bidding round (OALP-X) and emphasised the importance of modernising the oil and gas sector. This includes amendments to the Oilfields (Regulation and Development) Act and the introduction of the new Petroleum and Natural Gas (PNG) Rules 2025, which focus on improved lease management, dispute resolution and decarbonisation.

Investment Outlook and Future Potential

The Indian upstream sector is expected to attract over $100 billion in investment by 2030. The partnership of ONGC, Reliance and BP is seen as a signal of growing public-private collaboration. Meanwhile, the government has also launched the fourth round of Discovered Small Fields (DSF-IV), offering 55 discovered fields with significant oil and gas potential to private players, including Adani Welspun Exploration and Hindustan Oil Exploration.

Private vs Public Participation in Exploration

Although the OALP policy allows companies to suggest exploration areas, public sector firms like ONGC have dominated most rounds. Vedanta was the only private company with consistent participation, winning 41 out of 55 blocks in the first round and securing more in later stages. Despite this, the new ONGC-RIL-BP consortium hints at increasing private involvement, aiming to reduce India’s heavy dependence on crude oil imports, which currently cost over $220 billion annually.

Conclusion

This collaboration between ONGC, Reliance and BP marks a new chapter in India’s energy exploration journey. It reflects a shift toward stronger public-private partnerships and increased domestic exploration efforts. As the country works towards energy self-reliance, such strategic alliances and government initiatives will play a key role in securing future energy needs and driving economic growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.