• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

Mumbai , Dec. 29

THE fifth round of the New Exploration Licensing Policy for oil and gas will be announced in April. This would allow the Government to award more blocks for discovery of more oil and gas. The third round of bids for coal bed methane would also be announced early next year, Mr Ram Naik, Minister of Petroleum and Natural Gas, said here today.

Addressing the interactive session on `Challenges and Opportunities before Petroleum and Natural Gas sector' organised by the Indian Merchants' Chamber, Mr Naik said, "After the formulation of the NELP, 91 blocks have been awarded in the last four years compared to 22 blocks in the previous 10 years. We will increase this."

While the NELP would give impetus to exploration in the country, the Government is also aggressively scouting for oil and gas acreages in foreign countries with an estimated investment of Rs 8,000 crore. "The ONGC will go to the international markets to bid for gas exploration," he said.

The Government has also decided to disinvest 10 per cent of the equity each of the ONGC and GAIL, which have paid up capital of Rs 1,426 crore and Rs 846 crore. "We want to give shares to the domestic public first before calling in financial investors," remarked the Union Petroleum Minister.

Over Rs 12,000 crore is expected from the disinvestment, given that the market price per share of ONGC rose to Rs 734 on December 24, 2003 compared to Rs 162.34 recorded in 1999 while the market price of GAIL share has seen an upward movement to Rs 219 in December 2003, from R

s 60 in 1999. The face value of the share is Rs 10 each.

In its efforts to involve private participation in the oil and natural gas sector, the Government plans to invite companies to supply CNG in various Indian cities. "Private companies can supply CNG to India's most polluted cities. Developing CNG kits and supplying them can be done by them," Mr Naik said.

Moreover, the Government plans to set up 11,000 retail outlets in addition to the existing 20,000 retail outlets. Companies such as Reliance, Essar and ONGC that have bagged exclusive marketing rights would set up the retail outlets.

"Though we have given the marketing rights to Shell in principle, we are still awaiting a Rs 1,300 crore guarantee from Shell along with a Rs 700 crore bank guarantee," he added.

Article E-Mail :: Comment :: Syndication

Stories in this Section
GDP growth fails to check plunge in jobs

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line