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"After looking at the experience of the existing production sharing model we have identified three major thrust areas for the NELP 10 to be announced this year," the minister told reporters in Hyderabad.
Among these proposals, the Petroleum Ministry is examining the Open Acreage Policy under which any company can bid for any amount of acreage in contrast to the previous practice of putting the fixed blocks for auction. The last NELP round was conducted in the year 2011.
The ministry is also examining a proposal to expand the exploration licensing policy beyond the conventional oil and natural gas products. Under this proposal the developer will be given entitlement on products beyond the conventional oil and natural gas; "If somebody finds an unconventional hydrocarbon, it will also be given(for exploration and exploitation) to the person concerned," the minister said.
The product sharing mechanism is also being considered as a part of the ongoing exercise for determining the policy framework for NELP 10, according to him.
Responding to a question on the Centre's pricing policy on the upstream oil and natural gas, Minister Pradhan said investors have been happy with the existing pricing regime and policy clarity. "Those who have sold the wealth of the country by determining $ 9 per mmbtu of gas are pointing a finger at us," Dharmendra said while reacting to the Congress party's criticism against Prime Minister Narendra Modi on various issues in the recent times.
The minister said his government has changed the priorities of allocation of natural gas while giving top most priority to domestic and transport sectors. "The government is prepared to provide any amount of natural gas to these sectors. As far as the stranded gas power plants are concerned our ministry had recently introduced a scheme by providing RLNG as well as viability gap funding,"he said.
On the new investments, the minister said a new LPG trunk line from Paradeep to Hyderabad will be taken up in the phase 1 at an estimated cost of Rs 2,500 crore this year while a feasibility study was underway to build a similar pipeline from Mumbai to Hyderabad in the second phase.
"We are committed to give any amount of CNG and piped gas to the city of Hyderabad as it was denied its due share in spite of the fact that the East-West natural gas trunk line passes through the city" he said while stating that an amount of Rs 300 crore is being spent on capacity expansion of LPG refilling facilities and another Rs 500 crore would be spent on a new distribution terminal being put up on the city outskirts by the Indian Oil Corporation(IOC). Also about Rs 100 crore would be spent on expanding the CNG and piped gas network in Hyderabad this year, according to the minister.
