21 gas, oil blocks to be sold next year: Aiyar

Minister says automobile fuel prices will not be hiked

The government would put up 21 oil and gas exploration blocks for bidding in January next year, Petroleum Minister Mani Shankar Aiyar said today.

It is also setting up two committees, one at the ministerial level and another at the secretarial level, to expedite the process of obtaining clearances.

"We plan to launch the New Exploration Licence Policy-5 (NELP-5) along with Petrotech in January 2005," the minister said at a 'round-table' hosted by the Confederation of Indian Industry here.

This time, the government could concentrate on promoting NELP-5 among representatives of foreign companies that had a presence in India, he said.

Aiyar also indicated that petrol and diesel prices would not be allowed to rise despite international crude prices touching an all time high of $51 a barrel.

"We will continue to protect domestic consumers from the worst surge in crude prices," Aiyar told reporters.

"Consumers need not worry. They have elected a government which has consumers' interest in mind and has ensured that petrol and diesel prices were not increased in the last two months," he said.

Aiyar said the country had enough foreign exchange reserves to meet increased oil import bill.

The minister also said GAIL India Ltd would lose its monopoly over gas transportation with private players being allowed to lay pipelines.

"We have a situation where private companies are allowed to produce gas and also to market it. Not to allow them to transport gas to consumers will be unjust. I see GAIL as a dominant player in natural gas transportation, but also competing with private gas producers," he said.

GAIL has hitherto been the only company with the authority to lay pipelines for transporting natural gas. But with companies like Reliance Industries making big gas finds, there have been demands to open up the sector. While ruling out formation of regional gas grids, Aiyar said a national grid was the ultimate objective.

Aiyar also said the Directorate General of Hydrocarbons would be revamped and upgraded very soon. Vacant posts are to be filled up and officials from Oil and Natural Gas Corporation (ONGC), who are on deputation there are to be returned as soon as possible. "ONGC is an interested party and should not be represented in the regulatory regime," he said.

The Petroleum and Natural Gas Regulatory Bill was in the final stages of being cleared and should be placed in Parliament during the Winter Session, Aiyar said, adding that a regulator could be in place by next year.