NELP policy India
The NELP policy India (New Exploration Licensing Policy) was introduced by the Government of India in 1997-98 with the objective of boosting investments in the upstream oil and gas sector. Prior to NELP, exploration activities were largely dominated by public sector companies such as ONGC and Oil India Limited. However, the government realized the need to attract private and foreign investments to enhance exploration efficiency and production levels.Under the NELP policy India, a level playing field was created for both public and private players. The policy allowed 100% foreign direct investment (FDI) in exploration and production, which significantly opened up opportunities for international companies. A transparent bidding process was adopted, where exploration blocks were offered to companies based on competitive terms. The fiscal regime included production sharing contracts, tax incentives, and freedom for companies to market the crude oil and natural gas they produced.One of the biggest achievements of the NELP policy India was the increase in exploration acreage and participation from several global energy giants. The policy helped in discovering new reserves, especially in deepwater and frontier areas. However, challenges such as delays in approvals, disputes over cost recovery, and gas pricing controversies did emerge over time. These issues later led to the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP) in 2016, which replaced NELP with a revenue-sharing model.For industry professionals and stakeholders, understanding the NELP policy India is crucial, as it laid the foundation for private participation in India’s hydrocarbon sector. Platforms like Indian Petroplus provide exclusive insights, analysis, and updates on such policies, making them a valuable resource for tracking energy sector reforms in India, NELP, NELP India, NELP Policy, New Exploration Licensing Policy, India Oil Gas Policy, Exploration Policy India.For exclusive stories on the oil and gas sector, please register on www.indianpetroplus.com
