BG Group, the British energy major, is planning to double investment to $1 billion over the next few years in India. So far it has invested close to $500 million.

This was stated in the first ever annual report of BG India, after being present in the country for almost a decade.

In his foreword, Nigel Shaw, chief executive officer, BG India, said, "The fact that we have taken this measure, to publish an annual report, is indicative of the importance we place on our business in India and our commitment to the country.

"Our commitment was further strengthened in February 2004 when our parent company, BG Group plc, announced that India is a target country in which the group foresees major growth and intends to double the current investment level of $500 million over the coming years."

The BG group has identified India amongst the six focus countries for growth.

Dave Roberts, executive vice-president for the Middle East and Asia, BG Group, said, "India is critical to BG Group's success. for us, it is a strategic hub of the Asia and Middle East region."

A combination of factors, including population size, rate of economic development and a robust legislative and commercial framework, have contributed to the Group's decision to focus on India, the report has noted.

BG India operates its business through four companies, BG Exploration and Production India Ltd, Gujarat Gas Company, Mahanagar Gas Ltd and Iqara.

The company envisages to make additional investments in strengthening its infrastructure for transmission and distribution of natural gas and exploration and production.

The group is eyeing the liquefied natural gas market which is still "in its infancy with first cargoes landed in 2004". BG Group has identified LNG as another avenue of growth.

For the group, LNG contributed £945 million in its overall turnover of £3,587 million in 2003. While its exploration and production contributed £1,794 million and power generation £184 million.