New Delhi: India plans to launch the tenth bidding round of oil and gas exploration blocks by the end of this calendar year after making some investor-friendly changes, oil minister Jaipal Reddy said.
"Before the next round (of new exploration licensing policy) we would like to put in place a more investor friendly regime both for investment and from point of view of pricing," Reddy told reporters on Sunday at Petrotech-2012 conference.
The basis of change would be recommendations of the Rangarajan committee, which is examining existing production sharing contracts and matters related to pricing of gas, he said. "The committee is expected to submit its recommendations in next few weeks, the oil ministry will take a view and place it before the cabinet," he said.
Reddy assured that there would not be any change retrospectively. India has auctioned more than 250 blocks under nine rounds of new exploration licensing policy ( Nelp). The ninth round was launched in October 2010.
He declined to give details. "We can't anticipate what recommendations Dr Rangarajan would give," Reddy said. Oil ministry officials said oil and gas sector investors were worried about unpredictable fiscal regime and attempts of the government to alter contractual terms such as pricing and marketing freedoms.
The oil minister said the policy, which would be framed on the basis of the expert panel, would address concers of investors.
Reddy said better inter-departmental coordination would help investors in getting regulatory approvals.
It has been decided that the oil ministry would first take inter-departmental clearances before inviting bids for blocks in the 10 thround, oil secretary GC Chaturvedi said.
Out of about 70 blocks facing regulatory hassles from defence and environment departments, problems of more than 50 are resolved, he said.
"A high level committee headed by the cabinet secretary and comprising of officials of ministries such as defence and environment, has been set up to give clearances for exploration blocks," he told reporters.
"We have been clearing blocks and I believe only 11-12 are pending for clearances now," Chaturvedi added.
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