Tuesday October 23, 2018
Home India Government ad...

Government adopts revenue sharing model for auctioning 69 small oil and gas fields

0
//
76
Photo: http://www.livemint.com
Republish
Reprint

By NewsGram Staff-Writer

New Delhi: The Modi government has decided to replace the existing production sharing model with revenue sharing model while auctioning 69 small oil and gas fields.

NDTV
NDTV

This decision by the government is likely to benefit explorers and will help in harnessing the hydrocarbons worth Rs 75,000 crores, according to a report in the Times of India.

Since 1999, around nine rounds of auctions have been conducted in which 254 blocks have been auctioned under the production-sharing regime. In this model, the companies share their profit with the government in a graded manner. Also, the government sets the price and decides the buyers to whom the companies must sell.

In the new revenue sharing model, the bidder who offers the highest revenue to the government and shows maximum commitment to work wins the bid. The government is likely to give 80% weightage to the revenue shared and 20% weightage to work commitment. Further, no restrictions will be placed on pricing or marketing.

The new model is more beneficial than the old model as it is simple and more transparent, it minimizes the need for government monitoring, and importantly it protects government’s interest in both high and low oil-price scenarios. It also removes the disputes that arise during cost-recovery.

But, it has few limitations as well. It will not provide cover for risk capital exploration and may become useful for only the smaller blocks and not mainstream blocks due to India’s low prospectivity, according to TOI report.

Click here for reuse options!
Copyright 2015 NewsGram

Next Story

Kejriwal’s Door to Door Donation Drive is a Farce: Munish Raizada

Chanda Bandh Satyagraha makes an appeal that AAP should immediately restore donors' list on its website and then only seek new donations.

0
Kejriwal
Dr. Munish Raizada along with his Chanda Bandh Satyagraha team outside the office of AAP MLA Jarnail Singh (Tilak Nagar). File photo

Chicago: The Aam Aadmi Party Convener and Delhi CM Arvind Kejriwal has launched a door to door campaign seeking donations for the AAP.  According to former overseas co-coordinator of Aam Aadmi Party, Dr. Munish Raizada, this is nothing more than a misleading campaign!

Raizada says that Kejriwal has no moral right to seek donations from common man as he has dismantled financial transparency in AAP by removing donors list from its website. Displaying donors’ list showing real time donations and making the income and expenditure accounts available online were the basis and the promise of the AAP, emphasised Raizada.

Now, after hiding donors’ list and its balance sheets from the public, the AAP cannot claim to be practising alternative politics.

Munish Raizada, kejriwal
Lack of financial transparency in the Arvind Kejriwal-led AAP prompted a group of NRIs, who once worked to mobilise funds and support for the party, to turn against it. (File photo)

It may be noted that AAP removed the list of donors from its website in June 2016. Moreover, since then AAP has been surrounded with controversies related to donations. AAP had also received Rs 30.67 crore Income Tax notice, last year in November, implying that all is not well with AAP’s accounts, says Raizada.

He further questions Kejriwal, that if AAP has nothing to hide about its accounts and if AAP is honest with its account keeping then why is Kejriwal hiding the donations?

Even the donation policy that was earlier the pride of every AAP volunteer has been done away with. The donation policy on AAP website used to state: “Every single rupee donated to the party will be published on the website immediately along with the details of the donor. Every expense done by the party will also be published on the website.”

But rather than putting the donors’ list in public domain, the party’s corrupt leadership started blaming BJP and I.T. Department for harassing its donors.

 

munish raizada, kejriwal
Chanda Bandh Satygrah demands restoration of  lost values in AAP ( File Photo)

 

Opaque political funding is the fountain head of corruption. Further, Raizada says that if the party cannot be transparent in its political funding, then talking about fighting corruption and graft is a mere rhetoric. He said that the appeals by Chanda Bandh Satyagraha have fallen on deaf ears as far as the party’s

leadership is concerned. 

Chanda Bandh Satyagraha makes an appeal that AAP should immediately restore donors’ list on its website and then only seek new donations. Chanda Bandh Satyagraha was started by AAP’s volunteers in 2016, with an appeal to the public not to donate to AAP unless it makes its donation lists open and transparent.