Wednesday April 1, 2020
Home India Government ad...

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

0
//
Photo: http://www.livemint.com

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.

Next Story

Nearly 84% Indians Believe That Recovery From Coronavirus Pandemic Will Take 6 Months To 1 Year Time: Survey

The survey shows that as a precautionary measure, 81 per cent people have started washing their hands more frequently than before and 78 per cent have started avoiding crowded places as and when possible

0
Coronavirus
Out of 94 per cent respondents who are aware about the COVID-19 disease, 75 per cent are extremely concerned about the disease while only 52 per cent are aware of the virus type spreading the disease, said the survey from market research and analysis firm Velocity MR. Pixabay

Nearly 84 per cent Indians feel that recovery from new coronavirus epidemic will take 6 months to one year time, a new survey said on Tuesday.

Out of 94 per cent respondents who are aware about the COVID-19 disease, 75 per cent are extremely concerned about the disease while only 52 per cent are aware of the virus type spreading the disease, said the survey from market research and analysis firm Velocity MR. The survey involving 2,100 people was conducted in cities including Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Pune, Lucknow, Ahmedabad and Jaipur.

While 70 per cent respondents feel older people and also people with pre-existing conditions are more vulnerable to be infected by the virus. However, 63 per cent said this can be tackled with if proper hygiene and necessary precautions are taken.

Please Follow NewsGram on Twitter To Get Latest Updates From Around The World!

“The survey shows that as a precautionary measure, 81 per cent people have started washing their hands more frequently than before and 78 per cent have started avoiding crowded places as and when possible,” said Jasal Shah, Managing Director and CEO, Velocity MR.

Coronavirus
Nearly 84 per cent Indians feel that recovery from new coronavirus epidemic will take 6 months to one year time, a new survey said on Tuesday. Pixabay

Another important highlight is that 72 per cent of those surveyed said they will be more cautious and responsible while travelling abroad in future. The survey also found that many could not make changes in their day-to-day activities even if they wanted to.

While 58 per cent mentioned that they could not buy groceries and daily essentials during non-peak hours, 46 per cent could not avoid travelling for work-related purposes and 25 per cent were not given the provision to work from home by their organisations.

ALSO READ: Motorola Delays The Date of Sale For Flagship Smartphone “Moto Razr” in India

The respondents rely on television, social media, online websites and newspaper (in order) to get information about COVID-19. The general opinion among the respondents was that the travel and tourism sector has been hit the most with 51 per cent of the respondents having to cancel their trips in the last one month. (IANS)