India's Shale Gas Policy in a Month

India is expected to come out with a shale gas exploration policy within a month in an attempt to exploit its unconventional hydrocarbon potential.

"We have received comments on the draft shale gas exploration policy we had floated. We are now in the process of putting out a note for the consideration of the Cabinet and hopefully in a month’s time we will be able to announce the shale gas policy," Oil Minister M Veerappa Moily told reporters, Press Trust of India said.

The government is planning to launch its first auction of shale gas block by 2013-end on terms that are likely to be remarkably different from those offered in bid rounds for oil and gas blocks, PTI said.

Country’s shale gas potential is mainly concentrated in six basins: Cambay (in Gujarat), Assam-Arakan (in the North-East), Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo Gangatic basins.

The Directorate General of Hydrocarbons (DGH), the Oil Ministry's technical arm, has proposed to offer areas for exploration shale gas on royalty and production-linked payments to the government.

The draft shale gas policy does not permit cost recovery and hence profit sharing. Bidders would be asked to quote a percentage of output they are willing to share with the government at different production slabs, PTI report said.