Prime Minister Modi Approves New Oil and Gas Exploration Policy
The Union Cabinet, led by Prime Minister Narendra Modi, has approved a new policy framework aimed at reforming the exploration and licensing sector for oil and gas in India. The goal is to boost domestic exploration and production by attracting new investments and increasing activities in unexplored areas.
Key Areas of Focus
The policy reforms target four main areas:
1. Exploration in Unexplored Areas
In regions without commercial production, exploration blocks will be offered based on exploration work programs, without revenue or production sharing with the government. Contractors will still pay royalties and statutory levies.
2. Incentives for Gas Production
New gas discoveries awaiting Field Development Plan approval will have marketing and pricing freedom. Fiscal incentives are also provided for additional gas production beyond normal levels.
3. Enhancing Existing Fields
ONGC and Oil India Limited will prepare enhanced production profiles. Private sector partners can be involved to bring new technology and capital.
4. Ease of Doing Business
Measures include setting up coordination mechanisms and simplifying approvals to promote a business-friendly environment.
Benefits of the Policy
The policy aims to create a transparent and competitive framework to accelerate exploration and production. It is expected to reduce import dependence, improve energy security, and generate economic benefits such as job creation and technology transfer.
Doubts Revealed
Union Cabinet -: The Union Cabinet is a group of top government officials in India, including the Prime Minister and other ministers, who make important decisions for the country.
Prime Minister Narendra Modi -: Narendra Modi is the current Prime Minister of India, which means he is the head of the government and makes important decisions for the country.
Oil and Gas Exploration -: Oil and gas exploration is the process of searching for natural resources like oil and gas under the earth’s surface, which can be used for energy.
Licensing Sector -: The licensing sector refers to the rules and permissions needed to explore and extract oil and gas resources in a country.
Investment -: Investment means putting money into a project or business with the hope of making more money in the future.
Exploration Blocks -: Exploration blocks are specific areas of land or sea where companies are allowed to search for oil and gas.
Government Revenue Sharing -: Government revenue sharing means the government takes a portion of the money made from selling oil and gas.
Marketing Freedom -: Marketing freedom means companies can sell their products, like gas, in the way they think is best, without too many rules.
Energy Security -: Energy security means having a steady and reliable supply of energy, like oil and gas, so the country can function smoothly without running out.
