Rs 80,000 cr investment: Reliance Industries, others get relief over KG-D6, 6 blocks
Defence Ministry has declared 7 blocks including Reliance Industries'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 production activities 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 block in one month and for the 32 areas in three months.
"I dont think there will be a problem. We will sort it out. This (defence clearance to the 39 blocks) will open up Rs 80,000 crore of investment (and) open up a big gateway of investment in petroleum sector," he said.
Moily said oil and gas exploration and defence activities can co-exist as was the practice in several countries, including the United States.
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