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Apr 22, 2013, 09.53 PM IST | Source: CNBC-TV18

CCI oil-block nod will warm FII focus on India: Ex-oil secy

Former oil secretary GC Chaturvedi, in a reaction to the CCI clearance to 25 oil blocks, told CNBC-TV18 that the decision will boost oil exploration in the country and lure FII interest back to India.

I am quite hopeful that with more interaction with each other, the ministries concerned will be able to clear more blocks.

GC Chaturvedi

Former oil secretary

Former oil secretary GC Chaturvedi, in a reaction to the CCI clearance to 25 oil blocks, told CNBC-TV18 that the decision will boost oil exploration in the country and lure FII interest back to India.

Below is an edited transcript of the interview on CNBC-TV18

Q: Sources indicate that 25 oil blocks have been cleared- 16 oil blocks with normal conditions and nine with special conditions. What do you make of this decision by Cabinet Committee on Investments (CCI)?

A: The decision will aid the activities of upstream exploration companies. In fact, the CCI had suggested the ministries concerned to consider all the aspects and try to facilitate clearing the blocks. The concerned ministries have reconciled to some of the earlier conditions, have toned down their conditions and cleared the blocks.

Q: Will this lure foreign investors to India again?

A: It will give a lot of confidence to foreign exploration companies as they can be now be sure that the government is trying to play a facilitative role.

Q: Why has the number reduced from 47 to 31 and to finally 25 oil blocks?

A: That was how it was planned. I am quite hopeful that with more interaction with each other, the ministries concerned will be able to clear more blocks.

Q: How soon will this translate into action on the ground?

A: Once the clearance is given by the concerned ministries and it is received in the ministry of petroleum and natural gas and conveyed to the concerned contractor through the director-general of hydrocarbons (DGH), the companies would start making plans for exploration and start work would within a year.

Q: Will the government be bold enough to launch the NELP (New Exploration Licensing Policy) 10?

A: There definitely will be more enthusiasm. But before launching the NELP 10, the government and the DGH will have to go over a lot of ground and the exercise includes identifying the blocks and receiving approval from all the ministries, and then putting them up for bids.

Reliance stock price

On November 24, 2014, Reliance Industries closed at Rs 984.60, down Rs 12.85, or 1.29 percent. The 52-week high of the share was Rs 1142.50 and the 52-week low was Rs 794.00.


The company's trailing 12-month (TTM) EPS was at Rs 69.66 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 14.13. The latest book value of the company is Rs 609.24 per share. At current value, the price-to-book value of the company is 1.62.

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