India

Oil, gas production sharing pacts get CCEA approval

24 Mar 2017 | By Ramya Patelkhana
Meeting of Cabinet Committee on Economic Affairs

The Cabinet Committee on Economic Affairs (CCEA), chaired by PM Narendra Modi, approved a policy for extending the term of over two dozen pre-NELP (New Exploration Licensing Policy) oil and gas Production Sharing Contracts (PSC).

The extension would enable and facilitate investment for extracting the existing hydrocarbon reserves.

It will also enable contractors to extract additional reserves with the help of new technologies.

In context: Meeting of Cabinet Committee on Economic Affairs

24 Mar 2017Oil, gas production sharing pacts get CCEA approval

ProductionExtension to fetch $5.43 billion additional investment

The move to extend the term of PSCs signed prior to 1999 to bolster energy security is expected to fetch an additional investment of $5.43 billion.

The recoverable reserve from the blocks is estimated to be over 426 million barrel of oil equivalent.

In 2016-17 (till Feb'17), production from the blocks was 55 million barrels of oil and 965 million cubic meters natural gas.

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Cairn IndiaCairn India's block in Barmer, one of the beneficiaries

One of the beneficiaries of the move is Cairn India's block in Rajasthan's Barmer, the contract for which expires in May 2020; it accounts for nearly half of India's on land crude oil production.

The 25-year lease agreement for Cairn's block provides for a mutually agreed ten-year extension if gas is produced commercially.

Commercial production of gas from this field started in 2013.

Companies to pay higher shares of profits

Indicating that companies have to pay higher profit shares, the official statement said, "The government's share of profit petroleum during the extended period of contract would be 10% higher for these fields, thus bringing additional revenues."

EducationMinimum qualification standard for elementary teachers

In a bid to improve the quality of elementary education and ensure that teachers acquire minimum qualifications, CCEA approved an amendment to the Right of Children to Free and Compulsory Education (RTE) Act, 2009.

The amendment will reportedly enable the untrained elementary teachers in service to their training and ensure all elementary teachers have a certain minimum qualification standard.

ProjectsCCEA clears Mizoram-Meghalaya border road

CCEA also approved a 403km Mizoram-Meghalaya border road the estimated cost of which is Rs.6,721 crore to be taken up in 2017-18.

Out of 403km, 351km would be in Mizoram and 52km in Meghalaya.

Also, fresh estimates for Deepening and Widening of Mumbai Harbor Channel and JN Port Channel (Phase II) project costing Rs.2,029 crores have been approved by the cabinet.

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DetailsMoU for cooperation in the field of cyber security

The cabinet was informed of the signing of the MoU between Electronics & IT Ministry's Indian Computer Emergency Response Team and the US Homeland Security regarding cooperation in cyber security on 11 Jan'17.

The cabinet also changed the funding pattern of the Rs.10,000cr start-up fund by allowing venture capitalists to invest only twice the amount contributed by the government from four times allowed earlier.

AmendmentsAmendments to NABARD Act and Customs and Excise Act cleared

The Minimum Support Prices per quintal of milling copra and ball copra for 2017 were increased to Rs.6,500 and Rs.6,785, respectively.

Amendments to National Bank for Agriculture & Rural Development Act, 1981, for increasing NABARD's authorized capital to Rs.30,000cr and making changes in titles and sections were approved.

Amendment to Customs and Excise Act to abolish surcharges/cesses on various goods and services was cleared.