The Hindu Business Line : DGH targets Rs 100-cr revenue this fiscal

The Directorate General of Hydrocarbons (DGH), set up to ensure that sound practices are followed by oil companies in the field of exploration, development and exploitation of hydrocarbons, is looking at generating revenue of over Rs 100 crore during the current fiscal (2006-07).

According to official sources, against the projected revenue generation the DGH has already sold data packages of New Exploration Licence Policy (NELP) and Coal Bed Methane (CBM) blocks worth about Rs 52 crore.

Almost 62 foreign companies have shown interest in the sixth NELP rounds, which was kicked off recently, the official told Business Line. More funds are likely to be generated by prescribing application and processing fees for services, he said, adding that various services are being provided by DGH without any charges.

Development plans

In 2005-06, DGH had generated revenues worth Rs 22.71 crore. Exploration activities have facilitated an estimated investment of over $5.2 billion as the minimum committed amount under the five NELP rounds. About $4.07 billion has already been spent till December 2005. Besides, it has already approved development plans of approximately $5 billion for production of 40 million standard cubic metre per day (MMSCMD) of gas from the Krishna-Godavari basin.

More such plans are on the anvil due to more discoveries in these blocks.

More assignments

DGH, at present, monitors a total of 165 contracts relating to NELP I to V and pre-NELP exploration blocks/fields, and CBM I to III. Besides, 65 more blocks are under NELP VI and CBM-III on offer. Looking at the increasing scale of exploration activities, the Government is likely to assign more specialised and technical functions to DGH.

Cadre proposal

With the expanding work, the need for additional manpower has also been felt. For the purpose the Petroleum Ministry is in the process of approaching the Union Cabinet with a proposal to create a permanent cadre for DGH with a sanctioned strength of 160. As per estimates the proposed creation are estimated to cost Rs 16.30 crore against Rs 9.55 crore for the existing 89 posts. The additional financial burden of Rs 6.75 crore was much less when compared to the enhanced revenue generated by DGH, the official said.

As per the Petroleum Ministry proposal the allowance and perks of the Director General of DGH would be equivalent to the Chairman and Managing Director of a Schedule `A' company, like ONGC. Further, the qualifications and mode of recruitment against the sanctioned 160 posts to be determined by the administrative council of DGH subject to the approval of Oil Industry Development Board (OIDB), which funds the DGH.