The Hindu Business Line : Govt open to refining existing exploration licensing policy: Aiyar

THE Petroleum Minister, Mr Mani Shankar Aiyar, on Thursday, indicated that the Government was open to suggestions for fine-tuning the existing exploration licensing policy or adopting a new policy.

Addressing presspersons after a CEOs conclave on the subject of `private sector in the oil economy of India' organised by the Petroleum Federation of India (PETROFED) here, he said, "The PETROFED is going to coordinate a joint exercise of the private, domestic and international firms which are interested in such consultation with public sector firms to identify and make suggestions regarding problems that still persist with respect to our exploration licensing."

The New Exploration Licensing Policy (NELP) has been in operation for eight years, with the NELP V attracting the highest number of foreign companies compared to bids in all four previous rounds taken together. However, there is a need for a lot more foreign capital and technology in the upstream sector, the Minister said.

"To this end we have asked the group to look into how things have gone so far, to make their assessment of what is needed to be done by the Government to make it more effective. The group will suggest measures to refine or fine tune the existing policy or a framework within which a new policy can be adopted," he added.

The Minister also announced a constitution of a two-member panel to suggest ways of attracting investment by oil multinational companies in India's hydrocarbon sector. The panel will comprise Mr M. S. Srinivasan, Special Secretary, Ministry of Petroleum and Natural Gas, and Mr Vikram Singh Mehta, Chairman, Shell India and will submit its report in six weeks.

When asked about the subsidy burden sharing, the Petroleum Minister, said the burden of under-recoveries, which have piled up to Rs 9,500 crore in the first quarter of the current fiscal, should be shared by both private as well as public sector oil marketing companies.

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