ONGC to get Ratna back after 20 years

ONGC is set to regain possession of the Ratna and R-series shallow-water oil fields, roughly 130 km southwest of Mumbai, after an interval of about two decades. The CCEA on Thursday decided to let ONGC operate the fields.

Petroleum minister Dharmendra Pradhan said that the government has decided to give the assets to ONGC on nomination basis, so that they can start production.

Essar Oil was awarded the asset way back in 1996 through bidding, in pursuance of a policy adopted by the Narasimha Rao government in 1993 that some discovered fields be given to private players for development.

ONGC, as reported by FE earlier, has been demanding that the asset be returned to it. ONGC chairman and managing director DK Sarraf wrote to the then petroleum secretary Saurabh Chandra to press the PSU’s case.

ONGC claims to have found 57 million tonne of in-place oil reserve in the Ratna and R-Series fields. Of this, it took out 1.36 MT of hydrocarbon from February 1983 till September 1994 from nine development wells. At the time of bidding, these fields were seen to have a project life of 22 years. None of the petroleum ministers since 1996 chose to take a decision on signing the PSC with Essar Oil.

According to industry watchers, audit objections by the Comptroller and Auditor General of India, CBI probes into some of the contracts awarded previously and a public interest litigation filed in courts have prevented the government from taking a call.

ONGC had drilled 35 exploratory well and also set up a platform to monetise eight oil-bearing structures at a cost of $300-500 million.

Green light to R8,000-cr rural LPG scheme

The Cabinet approved a R8,000-crore scheme to provide cooking gas (LPG) connections free of cost to women members of poor households. The scheme aims to provide on a war footing LPG connections to women members of BPL families.

Post of Nominated Authority in CoalMin

The government on Thursday approved the creation of the post of Nominated Authority in Coal Ministry, a move that would help in effective functioning and resolve the uncertainties that had affected the sector and improve fuel availability to the core sectors. “The Cabinet chaired by PM Narendra Modi has given its approval for creation of a post of Nominated Authority (JS level) in Pay Band 4: Rs 37,400-67,000 plus Grade Pay of Rs 10,000 and other posts of officers and staff to assist the Nominated Authority in the Ministry of Coal,” the ministry said in a statement.

Capacity utilisation criteria for SSP subsidy removed

To promote production of multi-nutrient fertiliser single super phosphate (SSP), the government removed

minimum capacity utilisation criteria for manufacturing plants for availing subsidy.