The Cabinet Committee on Investment (CCI), at its meeting held today, cleared 25 E&P blocks for continued exploration of Oil and Gas, out of 31 E&P blocks where work had been stopped on account of security restrictions imposed by Ministry of Defence.
Out of 31 blocks, 9 blocks have been fully cleared and 16 blocks have been cleared with specific conditions. Due to clearances given at this meeting, investment already made to the extent of US$ 2.71 billion will be put to use and further investment to the extent of US$ 1.9 billion will be made in the exploration activities in the next 3-5 years.
Earlier, out of the total 40 blocks where E&P activities were stopped for want of clearances from Ministry of Defence and Ministry of Commerce, 1 block was cleared by Ministry of Commerce which had overlapped with an SEZ area. Out of 8 `No Go` Blocks, objected to by Ministry of Defence, 5 blocks were cleared by CCI at its meeting held on 20th March, 2013. Following these clearances, total investment already made of US$ 10.7 billion in these 5 blocks will be put to use and further investment of US$ 0.6 billion is envisaged in these Blocks.
In summary, out of total 40 blocks, 31 blocks have been cleared by CCI at its meetings held on 20th March, 2013 and 22nd April, 2013, which will put to use an investment of US$ 13.42 billion on Oil and Gas exploration which has already been incurred and it will also bring in an additional investment of US$ 2.5 billion over the next 3-5 years in exploration activities. The clearances given by CCI will remove the uncertainty relating to these 31 blocks and energize oil and gas exploration activities in the country. Huge investment is expected in these blocks in the coming years based on discovery of hydrocarbons.
40 Oil & Gas Exploration Blocks, wherein E&P activities were withheld due to non clearances / stringent conditions of Ministry of Defence and Ministry of Commerce, were spread over 3,32,960 sq. kms. area. Consequent upon clearances granted by CCI during its meeting held on 20th March, 2013 and today, 31 Blocks covering an area of 2,66,463 sq. km. would be available to the contractors for the E&P activities.