Reliance Industries Ltd, Cairn India and ONGC, contractors of five oil and gas blocks in the East Coast, can continue with their exploration and development activity following the Cabinet Committee on Investment (CCI) nod on Wednesday.
Work on these blocks, where investment close to $10.7 billion has already been made, was stuck because of inter-ministerial differences, particularly relating to Defence issues.
Work on these blocks was affected due to issues raised by the Navy, DRDO and the Air Force.
The blocks include the Krishna-Godavari Basin D6 block operated by Reliance.
Though no official communication was available, sources said CCI had approved five blocks, two with conditions.
The Petroleum and Natural Gas Ministry had sought approval for eight blocks, of which one was already relinquished by the contractor, Reliance Industries Ltd.
Out of the remaining seven, conditional clearance for four blocks – two of Reliance Industries, one each of ONGC consortium and Cairn India – were sought.
The Ministry had also sought CCI approval to declare three blocks as ‘no go’ areas.
Two blocks belonged to the ONGC-led consortium and one to the Oil India Ltd-led consortium.
The CCI, headed by Prime Minister Manmohan Singh, was set up to fast-track clearances to infrastructure projects involving investments of over Rs 1,000 crore.
In addition, Jayanthi Natarajan, Minister of State (Independent Charge) for Environment and Forests, apprised the high-level panel on the steps taken by her Ministry to streamline the processes relating to seeking various clearances.
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