8/10/2019 ecurrentaffairs.in-SPECIAL_ARTICLE_ON_OALP_VS_NELP.pdf

1/2

ecurrentaffairs.in http://ecurrentaffairs.in/blog/special-article-on-oalp-vs-nelp/

rameshin

SPECIAL ARTICLE ON OALP VS NELP

Very important topic for mains 2013

1. What is NELP

2. Why government introduced NELP?

3. Why NELP failed to satisfy investors

4. What is OALP

5. What are all the advantages of OALP

6. How OALP differs from NELP

NEW EXPLORATION LICENSING POLICY [NELP]

Introduction

New Exploration Licensing Policy (NELP) was launched by the Government for accelerating the pace of

hydrocarbon exploration in the country.

New Exploration Licensing Policy (NELP) was conceptualised by the Government of India, during 1997-

98 to provide an equal platform to both Public and Private sectorcompanies in exploration and

production of hydrocarbons with Directorate General of Hydrocarbons (DGH) as a nodal agency for

its implementation.

What is the need for such policy

India is the fifth largest consumer of primary energy and the third largest consumer of oil in the

AsiaPacific region after China and Japan.

Due to high economic growth, there is a huge need for enhancing supply of energy resources. Also,

dependence on imported petroleum continues to grow and is ultimately impacting the countrys long term

growth.

Of the 26 sedimentary basins identified in India, so far, only 20% of the total area has been well

explored. The remaining areas need to be extensively explored with the best of technologies, with

special emphasis on the frontier basins.With the introduction of the New Exploration Licensing Policy

(NELP), the introduction of much-needed capital and state-of-the-art technology to explore the

sector could be made possible

What is NELP IX

It is the ongoing ninth round of bidding under New Exploration Licensing Policy (NELP).

The government had offered 34 areas for exploration and production of oil and gas in NELP-IX in 2010

Salient features of NELP

Fiscal stability provisionin the contract.

Finalization of contract on the basis of model production sharing contract.Petroleum tax guide to facilitate investors.

Possibility of seismic option in the first phase of the exploration period.

No custom duty on imports required for petroleum operations

http://ecurrentaffairs.in/http://ecurrentaffairs.in/blog/special-article-on-oalp-vs-nelp/http://ecurrentaffairs.in/blog/special-article-on-oalp-vs-nelp/http://ecurrentaffairs.in/

8/10/2019 ecurrentaffairs.in-SPECIAL_ARTICLE_ON_OALP_VS_NELP.pdf

2/2