To raise domestic output and cut imports, the government will give ONGC and Reliance industries pricing and marketing freedom for yet to be developed discoveries and will levy a lesser royalty in case of state-owned firms raising production from existing fields.
Officials said the Cabinet headed by Prime Minister Narendra Modi on Tuesday approved a new exploration policy that contains a slew of measures for boosting domestic production of oil and gas.
Marketing and pricing freedom will be given to those new gas discoveries whose field development plan (FDP) or investment proposal is yet to be approved. This would apply for both state producers like ONGC and private ones like Reliance. Read more