New Delhi: The government is yet to decide whether to stick to an existing production-sharing agreement with oil and gas explorers or move to a new revenue-sharing one, with support emerging for both proposals.
Explorers want the existing contract to continue.
The cabinet committee on economic affairs will decide on the matter within a fortnight.
Mint reported on Saturday that a committee led by former finance secretary Vijay Kelkar had recommended the continuation of the present production-sharing contract (PSC) framework that allows explorers to recover their costs before they pay the government its share.
That recommendation went against another, made previously by another high-level panel headed by C. Rangarajan, who heads the Prime Minister’s Economic Advisory Council, that India move to a revenue-sharing regime and abandon the existing production-sharing contract.
By Utpal Bhaskar