India Shale Policy Expected Early Next Month

Indian government is expected to come out with a shale gas policy early next month.

“The shale gas policy will be announced in the next 20-25 days…we have sought comments from different ministries and will finalise it by then,” oil minister Veerappa Moily said, The Telegraph reported.

The minister said that India has the potential and needs right policy environment for investment.

The draft shale gas policy favours market determined pricing, spelt out in clear terms so that operators are aware of the risks before committing themselves to a project, The Telegraph reported.

The policy does not permit cost recovery and, hence, profit sharing — the two features that came under the criticism of the Comptroller and Auditor General of India during its audit of Reliance Industries’ KG-D6 block, the newspaper said.

Bidders will be asked to quote a percentage of the output they are willing to share with the government at different production slabs.