"We will come out with a shale gas policy by the end of December. We are sticking to this deadline," he said at the 11th Petro India Conference organised here by the India Energy Forum and Observer Research Foundation.
The government is planning to launch its first auction of shale gas block by the end of 2013.
The Directorate General of Hydrocarbons (DGH) has proposed to offer areas for exploration of shale gas on royalty and production linked payments to the government.
The DGH has prepared a draft policy, which does not permit cost recovery. Bidders would be asked to quote a percentage of the output they are willing to share with the government at different production slabs.
In this regard, the DGH's draft policy says: "This will minimise government intervention and remove complications in accounting and incentive for gold plating, which may occur while allowing profit sharing, based on cost recovery."