In order to speed up the process of granting exploration licences, the Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for delegating the powers to Minister of Petroleum and Natural Gas and Finance Minister to award oil and gas blocks to their winners in the ongoing auction, bids for which are due on May 2. This delegation of powers will expedite the decision making process on awarding blocks and give a boost to the initiative of ease of doing business. Earlier, only the Cabinet had the powers to approve award of a block or area for exploration and production of oil and gas.
The Cabinet stated that the two ministers will approve the award based on the recommendations of a panel of secretaries, called the Empowered Committee of Secretaries (ECS). The delegation of power is for Open Acreage Licensing Policy (OALP) bid rounds under the Hydrocarbon Exploration and Licensing Policy (HELP). Presently, the first round of OALP is underway, with bids for 55 exploration blocks on offer for prospecting of oil and gas due on May 2. These blocks are to be awarded by July. Under the new HELP, the competitive bidding will be continuous and blocks will be awarded twice a year.
The central government received an overwhelming response in first Eol cycle of OALP which started on July 01, 2017 and closed on November 15, 2017. In the first Bid round, 55 blocks, having an area of 59282 Square kilometer spreading across 11 States have been offered for bidding. The bidding process is being handled through a secured and dedicated e-bidding portal.