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The Government has constituted a committee under the chairmanship of Dr C. Rangarajan, Chairman, Prime Minister's Economic Advisory Council, to review the existing Production Sharing Contracts (PSC).
The Government awards oil and gas exploration blocks based on a PSC.
The review would be in respect to current profit sharing mechanism with the Pre-Tax Investment Multiple (PTIM), and exploring various contract models.
The committee will also look into a suitable mechanism for managing the contract implementation and governmental mechanisms to monitor and audit the Government's share of profit petroleum.
It will also structure the guidelines for determining the formula for the price of domestically produced gas, and for monitoring actual price fixation.
The Committee will submit its recommendations by August-end.
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