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The Cabinet Committee on Investment (CCI) is likely to review progress in sorting out differences between oil and defence ministries over the stalled 39 oil exploration blocks later today. In its first meeting held in January, CCI had directed the two ministries to settle their differences in a month.
"CCI meeting will take place in the evening and is expected to review the progress in expediting work in 39 stalled blocks," those in know of the development said.
After the first meeting of the CCI, Information and Broadcasting Minister Manish Tewari had said: "The oil and gas sector specifically from investment remit was discussed extensively. Certain problems were identified and the Ministry of Petroleum and Natural Gas has been tasked with responsibility of sitting down with the Ministry of Defence and resolving some of the problems which are there with regard to 39 blocks."
CCI has been tasked with boosting investment climate in the country by fast-tracking clearances for projects costing more than Rs 1,000 crore.
The ministry of Petroleum had sought a directive from CCI to waive off stringent conditions attached to Defence ministry clearances for 32 blocks. Contractors had expressed their inability to comply with these clearances. For another 14 Blocks, the ministry of defence had labeled the areas as ‘No-Go’ for exploration activities.
Besides, the ministry of commerce had also objected to ONGC block where a special economic zone had been notified in Gujarat.
The Petroleum ministry had earlier managed to get 27 of the total 78 cleared by the defence ministry. Oil companies including state-owned ONGC and private-sector Reliance Industries and Essar had committed exploration programme after clearances by various government agencies, but clearances for 78 blocks was cancelled leading to stoppage of work.
Petroleum Ministry argued that contractors had made an investment $15 billion in these 78 blocks.
The ministry further said that non-clearance of the blocks could lead to contractual disputes and see exodus of foreign investment and loss of credibility for the government.
