The Finance Ministry has objected to the Petroleum & Natural Gas Ministry’s proposed move to allow existing oil and gas explorers to find shale gas in their respective blocks on the grounds that it was against the existing production sharing contracts.
The Petroleum Ministry, which is working on a shale gas exploration policy, felt that this modus operandi would help faster exploitation of shale gas.
Policy support
But, now it will have to work on a fresh proposal and another round of consultations could take place, a senior Ministry official said.
The other option is to hold auction rounds, which may take a couple of years more, as suitable policy is yet to be put in place.
Whatever the proposal, the final call will be taken by the Cabinet.
Public sector explorer ONGC has already undertaken an experimental project to explore shale gas.
However, it cannot go ahead commercially because the country does not have a shale gas exploration policy.
Petroleum and Natural Gas Minister M. Veerappa Moily is of the view that as in the US, shale gas can emerge as an important new source of energy for India, too.