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The union cabinet is expected to consider two crucial policies to boost growth in the shale oil, gas and coal sector in a meeting scheduled to be held later today.
According to senior officials in the know, the cabinet committee on economic affairs is expected to consider a policy for exploration of shale oil and gas, which will initially allow state-owned ONGC and Oil India to tap the unconventional resource in areas they hold.
Officials in the know said that the policy will be rolled out in phases.
In the first phase only Oil and Natural Gas Corp and Oil India Ltd will be permitted to explore shale resources in the conventional oil and gas onland blocks that were allotted to the two firms on a nomination basis before the New Exploration Licensing Policy in 1999.
Apart from shale gas, officials said the cabinet could also consider coal blocks auction policy for private steel, cement and power firms. The policy, if cleared, will pave way for allotment of coal mines through competitive bidding for the first time.
A proposal from the food ministry to allow private traders to purchase wheat from FCI depots situated in states other than Punjab and Haryana for sale in the open market could also be considered by the cabinet committee on economic affairs (CCEA).
