India to launch eighth round of NELP by April

India is likely to launch the next round of auction of oil and gas exploration blocks by mid-April, although a smaller number may be thrown open for bidding initially to test markets.

The eighth round under New Exploration Licensing Policy (NELP-VIII) "will be announced as early as March-end and certainly by mid-April", Petroleum Secretary R S Pandey told reporters here.

The next round may be split, with a small number of exploration blocks or areas being put up for bidding by April. "We want to test the water particularly in view of the global financial meltdown."

If there was a market appetite, more blocks may be offered under the same round or NELP-IX before the year ends.

"This is not yet finalised. The exercise is still on. We are in the progress of identifying blocks and securing clearances for them," he said.

The government had last year awarded 44 oil and gas blocks under NELP-VII.

With two-third of its sedimentary basis remaining unexplored, India is pushing for private and foreign investment to uncover its hydrocarbon potential. It wants to raise domestic oil and gas output to cut import dependence.

While the nation is 76 per cent dependent on imports to meet its oil needs, gas supplies barely meet half the demand.