Ice broken on defence clearance to RIL's KG-D6, 6 blocks: Veerappa Moily

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Express news service :New Delhi, Feb 01 2013, 15:59 IST

With over Rs 80,000 crore of investment in oil and gas hunt stuck for want of defence nod, Oil Minister M Veerappa Moily today said the ice has been broken on getting the clearance for 39 offshore areas including RIL's (Reliance Industries) already productive oil and gas fields.

Defence Ministry has declared 7 blocks, including RIL's KG-D6 which has been in production since September 2008 and its gas discovery block NEC-25 for reasons like overlapping with proposed Naval base or being close to missile launching and Air Force exercise area.

"We have broken the ice. I don't think you can say (log jam continues)... oil and gas activities and defence strategies can co-exist," Moily told reporters when asked about the outcome of the first meeting of the Cabinet Committee on Investment (CCI).

He said the Defence Ministry has classified seven blocks as 'no-go' areas for oil and gas exploration and has imposed stringent conditions for another 32.

The CCI in its meeting on Wednesday asked the Ministry of Defence and Moily's ministry to sort out differences over the seven blocks in one month and for the 32 areas in three months.

"I don't think there will be a problem. We will sort it out. This clearance will open up Rs 80,000 crore of investment and a big gateway of investment in the petroleum sector," he said.

Moily said oil and gas exploration and defence activities can co-exist as is the practice in several countries, including the United States.

"They (Defence Ministry) have a concern, which we are

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Reader's Comments (1)| Post a Comment

Free - Exploration of Off - Shore Oil

Unpopular | 01-Feb-2013Reply | Forward

We know by our bitter Experience that Fuel Oil is a Precious Commodity, and over 80 percent of our need is imported at great cost and effort. It's Prices keep rising every week. There should be no Restriction on its Exploration by Indian or Foreign Oil Companies. Because of their Promixity or Type of Activity the Presence of the Drilling Rigs or Storage does not become a Threat. In fact such Rigs or Platforms or Storage Tanks do require their own Security, which can easily be Provided with Mutual Consultation with the Oil Company and the Military Commanders. Oil Exploration should be Promoted, be it On Shore or Off - Shore.