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Cabinet relaxes NELP, pre-NELP pact rules
News:
- The Union Cabinet recently, approved the policy framework to streamline production sharing contracts signed in the pre-New Exploration Licensing Policy (NELP) and NELP periods.
Important facts:
2. Key decisions under the framework includes:
- Increasing the exploration period granted for blocks in the northeast.
- Easing the sharing of royalties with the developers of the blocks.
- Based on recommendations in ‘Hydrocarbon Vision 2030 for North East, the government has extended timelines by two years for exploration and one year for appraisal period.
- This was done while considering geographical, environmental and logistical challenges of the north eastern region.
- The government has also allowed marketing, including pricing freedom for natural gas to be produced from discoveries which are yet to commence production.
- The government has created an enabling framework for sharing of statutory levies including royalty and cess in proportion to the participating interest of the contractor in Pre-NELP Exploration Blocks.
