Business

Govt To Auction 69 Oil Fields, Introduce Revenue Sharing Model

NEWS WORLD INDIA | 0
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| September 2 , 2015 , 12:38 IST
dharmendra-pradhan Union Cabinet has approved the Marginal Fields Policy (MFP) for development of hydrocarbon discoveries by national oil Companies like ONGC & Oil India. Under new Policy, 69 unexploited oil fields held by ONGC & Oil India for many years will be opened for competitive bidding. Government will receive a share of Gross revenue instead of profit- sharing in earlier formula. The license granted will cover all hydrocarbons found in the field instead of being restricted to one item. Talking to media about the Cabinet decision, Petroleum and Oil minister Dharmendra Pradhan termed revenue sharing of oil fields is a paradigm shift. Cabinet has also cleared reimbursement of Rs.113 crore of losses on pulses imported between 2006-11 by NAFED, PEC,STC & MMTC. This will enable Central PSUs to be financially sound to intensify trading activities to cool down prices of essential commodities. Cabinet has also approved import of 5,000 tonnes each of Tur and Urad Dal by MMTC for retail distribution to consumers by September 5.