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The government has cleared the way for setting up of a petroleum and gas regulator. A Bill to this effect will be introduced during the current session of Parliament.
The Petroleum and Gas Regulatory Board Bill proposed setting up a five-member downstream regulator for the petroleum and natural gas sector.
Simultaneously, the government would also empower the Directorate General of Hydrocarbons, as a regulator for exploration and production activities, with power to regulate gas prices in terms of production-sharing contracts.
The Cabinet Committee on Economic Affairs, which met till late on Thursday night, also cleared a fast-track approval mechanism for Oil India Ltd's overseas investment.
It decided that OIL can form a special purpose vehicle either with Indian Oil Corporation or any other oil navratna, approval for which would be granted by the Empowered Committee of Secretaries. The mechanism would be similar to that for OVL.
The CCEA also approved ONGC Videsh Ltd's proposal to invest, in the event of it being the successful bidder, up to $820 million in project Sugarloaf, including payment of purchase consideration of $330 million for acquiring the full equity of Exxon's Brazilian subsidiary, and a further amount of up to $490 million as cash calls for the period beyond July 1, 2005.
The PGRB Bill proposed setting up of a common appellate tribunal for electricity, petroleum and natural gas sectors. While the PGRB would look into the price of natural gas in the context of provisions relating to restrictive trade practices and transportation charges for the use of pipelines, the DGH would look into the pricing of gas in terms of the provisions of production-sharing contracts.
The CCEA also cleared the $150-million investment by Mauritius-based Newbridge India Investments to acquire up to 74 per cent stake in Shriram Holdings (Madras) Private Limited and the consequent downstream investment by SHMPL in shares and warrants of Shriram Investments Limited, Shriram Transport Finance Company Limited and Shriram Overseas Finance Limited.
At its meeting last night, the CCEA cleared the Rs 230.72-crore (Rs 2.31 billion) acquisition of a Technology Services and Demonstration Vessel in 2007-08 for research and development in ocean technology services.
The committee also approved the Council of Scientific and Industrial Research's scheme on intellectual property and technology management at a total cost of Rs 145.15 crore (Rs 1.45 billion) over the 10th Five-Year Plan period.
As per the revised estimates for the TDV project, Rs 191 crore (Rs 1.91 billion) would be used during the 10th Plan period and the balance of Rs 39.72 crore (Rs 397 million) in the 11th period. For the CSIR scheme, Rs 100 crore (Rs 1 billion) would be met through the plan budgetary and the rest would be funded through CSIR's internal accrual.
The CCEA also gave post-facto approval for expenditure of Rs 70.75 crore (Rs 707 million) incurred during the first three years of the 10th Five-Year Plan.
