- Government launches bid for 55 oil and gas blocks invited under OALP
The government has initiated auction procedures for 55 oil and gas blocks under the new Open Acreage Licensing Programme (OALP). According to Oil Minister Dharmendra Pradhan, six companies have expressed interest for the new oil and gas blocks.
The new bids add Uttar Pradesh and Haryana to the hydrocarbon exploration map. Himalayan Foreland and Ganga Basin are among the new identified blocs.
Under the OALP bid mode, companies can pick their own interested hydrocarbon exploration area and thereby submitting expression of interest.
Here, the policy gives an option for the exploring company to select the exploration blocks on its own, without waiting for the formal bid round from the Government.
After the pooling of bids, and acreage identification, they are turned into blocks and then bids will be called.
Basics and backgrounder
What is OALP?
The OALP is a liberalized regime for oil and gas exploration by announcing Open Acreage Licensing process that allows companies to carve their own areas for hydrocarbon hunting. OAL will be a part of the Hydrocarbon Exploration and Licensing Policy (HELP).
The Open Acreage Licensing Policy (OALP) gives an option for the exploring company to select the exploration blocks for hydrocarbon forms like oil and gas, coal bed methane, gas hydrate etc., on its own, without waiting for the formal bid round from the Government. Here, a bidder intending to explore hydrocarbons can apply to the Government seeking exploration of any new block. After the government scrutiny, the government may award it and will call for competitive bids after obtaining environmental and other clearances.
The OALP was introduced in March 2016, as part of the new hydrocarbon exploration policy – HELP. Till then exploration option was available only if government invites tender for particular area. But with OALP, oil and gas acreages will be available round the year. Previously under NEPL it was available only through bidding rounds and investors have to wait for the bidding rounds.
- GST rates on 83 items were reduced
The GST Council has reduced rates of 29 goods and 54 categories of services after its meeting held in New Delhi on 18th of January. In the last three meetings, the Council has reduced rates of several times as a fine-tuning exercise. In October 2017, rates of around 200 items including both goods and services ere brought down by the Council.
The items whose tax rates were reduced includes used cars, tailoring, drip irrigation systems etc.
Besides the rate cut, the Council also discussed efforts to simplify return filing, enhancing compliance, and design of anti-evasion measures.
- Government to set up $350 mn fund for solar project development
The Government is setting up a $350-million solar development fund to support financing of solar projects; according to Minister of State for new and renewable energy Raj Kumar Singh. He was delivering the keynote address at the International Solar Alliance (ISA) Forum in Abu Dhabi. India has set a solar energy target of 175 GW by 2022, solar energy out of this is 100 GW.
