BackPM-led panel gives 1 month deadline on oil block issues
Petroleum and defence ministries asked to resolve exploration and production work issues in 39 blocks
Premium(Sushil Kumar/HT)
New Delhi: In an attempt to arrest the rapidly diminishing interest in the Indian hydrocarbon sector, the newly-constituted Cabinet Committee on Investment on Wednesday gave the ministries of petroleum and defence one month to resolve issues related to the exploration and production work in 39 blocks.
These blocks were awarded under the New Exploration and Licensing Policy (Nelp) rounds. Among these are oil blocks such as Reliance Industries Ltd’s KG-D6 and others falling within areas classified as ‘no-go’ by the defence ministry. The explorer sold stakes in KG-D6 and 20 other blocks to BP Plc, Europe’s second-biggest oil producer by market value, in August 2011. The defence ministry withdrew approvals for exploration in 16 of these blocks, according to a 29 January Bloomberg report. About $16 billion of projects, with clearances withheld, were to be considered by the committee, ‘Bloomberg’ had reported.
“The CCI has directed that both the defence ministry and the petroleum ministry discuss the issue in detail and formulate solutions within one month to resolve the issue," the committee said in a press note.
While it can review procedures of ministries and departments for granting clearances, the committee is not empowered to overrule their decisions. The committtee is headed by the Prime Minister and identifies and facilitates ‘key’ projects requiring an investment in excess of 1,000 crore.
The petroleum ministry had earlier warned the Prime Minister’s Office that the “non-clearance" of blocks awarded under the Nelp “may lead to exodus of foreign firms who were brought with assurance of conducive investment environment. ‘Bloomberg’ contributed to this story.
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