India: Shell Puts the Brake on Retail Expansion
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Monday, 07 April 2008 |
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Shell India is the second private sector
petroleum company to review its expansion plans in India. The company
has decided not to open any more service station outlets for the moment.
As coverred in recent weeks by PetorlWorld, Reliance and Essar have taken drastic measures
following the government's persistent refusal to grant subsidy to
private petrol retail companies.The Indian Government's
refusal to grant subsidy to private companies on par with public sector
retail companies is taking its toll on the private sector. There is no
doubt it will affect future investment and expansion plans.
Though
Shell is not planning to shut down any of its its existing petrol
stations yet, the company has asked some of its employees to start
looking for another job according to local media. "Some
employees undergoing training are being asked to look elsewhere, with
due compensation being given to them according to their contract. But
some have also been absorbed at existing sites," Deepak Mukarji, head
of corporate affairs, Shell India, told local media.
PetrolWorld 030408
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