Industry body FICCI (Federation of Indian Chambers of Commerce and Industry) has welcomed the slew of measures taken by the CCEA(Cabinet Committee on Economic Affairs) chaired by Prime Minister Narendra Modi to usher in much awaited reforms in the hydrocarbon sector which would have positive impact on the Energy Security.
The president of FICCI Harshavardhan Neotia commended the measures which have prioritised accelerated exploration and ensured India's energy security rather than Government intervention in micro management of projects.
"The focus of the Govt. to incentivize E&P in domestic oil and gas basins, offer the right risk and reward balance for different geographies based on the risk profile and risk capital employed by the operator," Neotia said.
"The decision of the Government to extend PSCs of 28 small and medium size discovered fields which would accelerate the employment generation both in the exploration and production stage," he added.
"The relaunching of the bidding rounds after a gap of 6 years as Hydrocarbons Exploration and Licensing Policy (HELP), announcing uniform license for all areas coupled with arms-length price discovery in an open acreage framework will boost the investor confidence in our domestic basins", added Neotia.
