Government launches NELP-VIII hydrocarbon blocks road show
10 Aug 2009
The central government re-launched the road show of the eighth round of the New Exploration Licensing Policy (NELP-VIII) in Mumbai on Saturday, the largest auction of oil and gas blocks in the country.
Earlier in April, an auction under NELP-VIII was launched for which 10 August was fixed as the cut-off date for bidding for the oil and gas blocks. However, it was deferred later over ambiguity on tax holidays for natural gas. (See: India to auction 80 hydrocarbon blocks under NELP-VIII)
Further to the finance minister's decision regarding a seven-year income tax holiday to natural gas production in the 2009-10 budget, the government flagged off the auction again, fixing the last date for bidding as 12 October.
Under the programme, the Indian government is offering 70 oil and gas exploration blocks covering an area of over 160,000sq km. Out of the 70 blocks, 24 are in deep water, 28 are in shallow water, 8 are onshore and 10 are classified as Type-S.
Additionally, 10 blocks are offered under coal bed methane policy (CBM-IV) for exploration and production of gas from coal seams covering an area of about 5,000sq km located in seven states.
Through the auction, the government expects to attract investments to the tune of $3 billion in the oil and gas sector from domestic and international companies.
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