Panel backs old system for oil block bid

Two years after the government shifted to revenue sharing contracts for oil and gas block auctions, a high-level panel has suggested reverting to the earlier system of awarding areas in most basins based on exploration commitment.

The six-member panel, headed by NITI Aayog Vice-Chairman Rajiv Kumar, in its report submitted on January 29, stated that “unexplored areas in Category II & III basins be bid out exclusively based on exploration work programme.”

“No revenue or production sharing other than payment of statutory levies [including royalty]” should be the criteria, the panel said.