New exploration licensing policy (NELP) in India

In India, the exploration and production (E&P) activities in petroleum sector had been the protected domain of the public sector oil companies. The government of India has been implementing the policies of liberalisation and reforms in the Indian economy for two decades. This was extended to the petroleum sector also. The exploration policy was also revised and new exploration licensing policy was introduced in 1999. Foreign and private companies were also permitted to participate in the ensuing bidding rounds. Hundred per cent foreign direct investment (FDI) was permitted in E&P sector. Many incentives were extended to the investors. The bid evaluation system was made transparent, and level playing field was promised to all participating companies, domestic or foreign, public or private. Since then, eight rounds of NELP have taken place. After the ninth round, the government is contemplating to introduce open acreage licensing policy. The article provides an assessment of the New Exploration Licensing Policy in India.