In what will boost the gas production in the country, the cabinet committee on economic affairs (CCEA) on Wednesday approved the marketing and pricing freedom to coal bed methane (CBM) contractors to sell CBM in the domestic market. CBM is a form of natural gas extracted from coal beds. If any buyer is not identified, the contractors can sell the CBM to its any affiliate. Royalty and other dues to the government, however, shall be payable on the basis of Petroleum Planning and Analysis Cell notified prices or selling prices, whichever is higher.

The policy is expected to incentivise the CBM operation in the country. As on March 2016, CBM production from the country’s four blocks stood at 1.64 mmscmd.

Around 33 CBM blocks have been awarded in four rounds of CBM bidding, covering 64 % of the total available coal bearing area of 26,000 sqkm across 12 states. These blocks are seen to have about 62.4 trillion cubic feet (tcf), out of which, 9.9 tcf had been established as gas-in-place.

You may also like to watch:

The CCEA also permitted Indian Oil to sell its 24% equity in Lubrizol India Pvt Ltd—a manufacturer and supplier of lubricant oil, lube oil, engine oil and chemicals—to the joint venture partner in the firm Lubrizol Corporation of the US.

The sale is expected to enable Indian Oil to have long-term association with Lubrizol Corporation and letting the Indian JV to have access to the latest global additive technologies developed by the foreign partner.

Special assistance for Andhra Pradesh

The Union Cabinet on Wednesday approved special assistance for Andhra Pradesh by way of a unique dispensation in funding of externally aided projects (EAPs) and funding of irrigation component of Polavaram project.

The Centre will provide special assistance measure to AP, which would make up for the additional Central share the State might have received during 2015-16 to 2019-20, if the funding of Centrally Sponsored Schemes (CSS) would have been shared at the ratio of 90:10 between the Centre and the State, an official statement said. The special assistance will be provided by way of repayment of loan and interest for the (EAPs signed and disbursed during the above period by the state.

The Centre will also fund 100% of the remaining cost of the irrigation component only of the Polavaram project for the period starting from April 1, 2014, to the extent of the cost of the irrigation component on that date.

The Centre while fulfilling its commitments under Andhra Pradesh Reorganisation Act 2014, has already provided “Special Assistance” of Rs 1,976.50 crore to the state during 2016-17.

DA hiked by 2%

The Union Cabinet on Wednesday approved an additional 2% dearness allowance/dearness (DA/DR) relief for 48.85 lakh Central government employees and pensioners with effect from January 1, 2017.

The decision would cost the exchequer Rs 6,833.5 crore in 2017-18 (for a period of 14 months from January, 2017 to February, 2018), the government said in a statement.