The Government has been planning a path breaking reform in oil and gas industry to basically allow pricing freedom for the gas in the new explorations blocks that companies can bid whenever they want to without waiting for the auction round. It will be also offered to license the companies to explore oil and gas and coal based methane in their areas. Under this policy the government has proposed to end the profit sharing that will insulate the firms from audits and government involvement in its day to day affairs under oil fields.
These measures will be helpful in boosting up the reforms such as pricing of diesel, auctioning of small oil fields, transferring direct subsidy of cooking gas and etc. It will be liberalising the foreign direct investment in sectors related to retail, defence and broadcasting. Oil ministry on this note plans to provide incentives for explorations of unconventional hydrocarbons. It will be directing on the policy of ” Minimum government , maximum governance”.
