• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Rahul Wadke

Some departments say plan involves financial risk

Mumbai , Oct. 8

The Maharashtra Government has put on hold its plan to enter the oil and gas exploration activities. According to State Government sources, some departments have opposed the plan on grounds of financial risk involved with the venture.

In July 2006, the State Government had firmed-up plans of entering oil and gas explorations. It even had plans of bidding for the recently concluded sixth round of the New Exploration Licensing Policy (NELP), with an initial seed capital of Rs 100 crore, sources said.

The State wanted to participate in NELP-VI as a bidder. But several policy decisions needed to be taken before participating in these bids. This was not done, said an official, adding that such indecisiveness could harm the industrial development of the State. The power demands of the State are increasing and so is the load shedding.

Other States

An industry analyst pointed that neighbouring States such as Gujarat were ahead in oil and gas explorations primarily due to strategic planning on part of the bureaucrats.

The Gujarat State Petroleum Corporation Ltd (GSPC), an undertaking of Gujarat Government, is a pioneer in the field. Incorporated in 1979, the Corporation today has a pan-India presence. With the opening-up of the hydrocarbon sector, it has acquired several oil and gas fields. Since the announcement of NELP in 1997, it has actively participated in biddings.

The Gujarat Government holds approximately 95 per cent equity stake in this company.

Upgradation

The Maharashtra Government does not have core competencies in oil and gas explorations but it would be possible to build it. State Government subsidiaries such as Maharashtra Petrochemical Corporation Ltd and Maharashtra Industrial Gas Transmission Company Ltd could be upgraded for the new role, sources familiar with the development said.

The gas transmission company along with its parent organisation, the Maharashtra Industrial Development Corporation, is setting up a gas grid in the State. The gas grid would primarily cater to industrial consumers in the State.

More Stories on : Petroleum | Policy | Maharashtra

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`West European outsourcing market grows fastest'

Copyright © 2006, 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