Oil NSE 0.89 % companies can exit the exploration contract without paying a penalty or request a reduction in committed work programme if the government delays necessary clearances for more than two years, as per a new proposal by the petroleum ministry.
Delayed licences and clearances have been at the heart of slow progress in exploration projects in the country, leaving companies and the government squabbling over the blame for delays. Explorers have to obtain several clearances from multiple government authorities, resulting in missed deadlines and increased liabilities.
