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CCI fails to break logjam over oil and gas blocks issues

31 Jan 2013 Evaluate

Prime Minister Manmohan Singh headed first meeting of the newly formed Cabinet Committee on Investment (CCI) failed to break the logjam over defence clearances to oil and gas activities in 39 offshore areas, including Reliance Industries' producing KG-D6 fields. During the meeting, Manmohan Singh asked the ministries of petroleum and defence to sort out differences on allowing exploration and production particularly in Krishna Godavari basin.

The CCI, which was constituted to expedite the clearance for infrastructure projects of Rs 1,000 crore or more took up issue of defence ministry, declaring 6 blocks in KG basin including KG-D6 producing fields and one in NEC or North East Coast region (RIL's gas discovery area of NEC-25) as ‘No-Go’ areas and putting stringent conditions on 32 other blocks.

Earlier, Defence Ministry had declared 14 blocks as 'No-Go' areas as they were close to proposed naval base or missile launching range/air force exercise area. But later the Defence Ministry agreed for exploration of 7 blocks in Mahanadi basin. Further, one more block which was previously objected by the Commerce Ministry too was cleared.

Regarding these issues, even I&B Minister Manish Tewari said ‘there were certain areas where certain problems were identified and therefore the Ministry of Petroleum and Natural Gas has been tasked with responsibility of sitting down with the Ministry of Defence and resolving some of the problems which are there with regard to 39 blocks’. Further, he said that specific timelines have been fixed for both ministries and asked to come back to CCI within one month. 

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