BANKING AFFAIRS

Detailed explanation-1: -New Exploration Licensing Policy (NELP) was conceptualised by the Government of India, during 1997-98 to provide an equal platform to both Public and Private sector companies in exploration and production of hydrocarbons. It was introduced to boost the production of oil and natural gas.

Detailed explanation-2: -New Exploration Licensing Policy (NELP) was formulated by the Government of India, during 1997-98 to provide a level playing field to both Public and Private sector companies in exploration and production of hydrocarbons with Directorate General of Hydrocarbons (DGH) as a nodal agency for its implementation.

Detailed explanation-3: -New Exploration Licensing Policy (NELP) Government of India formulated a policy called New Exploration Licensing Policy in 1997.

Detailed explanation-4: -HELP provides for revenue sharing model, the government will receive a share of the gross revenue from the sale of oil and gas, etc. and will not be concerned with the cost incurred. The NELP was profit sharing model, where profits are shared between the government and the contractor after recovery of cost.

Detailed explanation-5: -What distinguishes OALP from New Exploration and Licensing Policy (NELP) of 1997 is that under OALP, oil and gas acreages will be available round the year instead of cyclic bidding rounds as in NELP. Potential investors need not have to wait for the bidding rounds to claim acreages.