Aiyar sets up panel to speed up exploration

Petroleum Minister Mani Shankar Aiyar today announced setting up of an inter-ministerial mechanism to expedite oil and gas exploration activities in the country.

While the cabinet would shortly announce award of 20 new blocks for exploration to private operators, 14 blocks from the previous rounds of new exploration and licensing policy were stuck at various stages for governmental clearances.

Speaking to reporters after a meeting with finance minister P Chidambaram and minister of state for environment A Raja, Aiyar said the institutional framework comprises appointment of nodal officers from the ministries of finance, environment, defence and home affairs to look into various issues relating to award of the block and subsequent signing of production sharing contracts.

He said a committee of nodal officers would resolve various issues relating to the oil and gas blocks offered for exploration activities under NELP-V.

'In case there is a problem in amicable resolution to the problems, the joint committee of special secretary in the petroleum ministry and environment secretary will facilitate the clearance,' Aiyar said.

"We will shortly go to the Cabinet for announcement of awards," Aiyar told reporters after the meeting.

He said the government would be awarding the contracts for NELP V by July 31 and sign licence agreement by October 2.

Necessary clearances would be received by December 31 so that the companies can take up exploration activities by January, he said.

On the issue of Olive Ridley turtles, Aiyar said the companies involved would make a presentation to the environment and forest ministry in a week's time.

He said the Directorate General of Hydrocarbons would fund a study on the issue to be conducted by the Wildlife Institute of India, Dehradun.