Government takes considerable time in awarding contract for exploration blocks and most of the blocks offered from the fourth to eighth round (from 1991-94) were signed in June-July 1998, a lapse of about five years, the estimates committee said in its second report tabled in Lok Sabha recently.

"The committee need hardly appreciate the number of years being taken in conclusion of agreements for commercial decisions in oil exploration as compared to not more than three months elsewhere in the world," it said, adding the government showed little concern for India's huge dependence on oil imports.

So far only six out of the total of 26 basins having potential for oil and gas have been partially explored with the result that it is not yet possible to come to any conclusions about thepotential of oil production in India. Some of the blocks offered in 6th, 7th, 8th and joint venture exploration rounds have still not been signed.

Government has so far invited eight rounds of bids for block exploration and one round since 1980 under the joint venture exploration programme offering small and medium oilfields for development as joint venture operations with Indian companies.

With the decline in indigenous production of crude oil, import of crude oil was 33.9 and 31.8 million metric tonnes respectively during 1996-97 and 1997-98, which is half of the country's requirements of around 66 million metric tonnes.

India has not had any major oil find in over a decade and despite contributions from private and joint venture companies from small and medium-sized oil fields offered to them under modified exploration policy, production of crude oil in India is stagnating below 35 million metric tonnes, the report said.

"The ministry should suitably strengthen its machinery dealing with the workof inviting, finalising and awarding of contracts for exploration blocks expeditiously so that bids received could be analysed, evaluated and blocks offered with due promptitude," the committee said.

It said, exploration efforts are required to be made by national oil companies and there should also be efforts, with substantial increase in the investment in the upstream hydrocrabon sector, to arrest the declining reserve accretion to production with the participation of private sector.

The committee hoped that government decision to allow private sector participation in exploration and production of oil under NELP would boost domestic production of crude oil and reduce dependence on imports. The NELP should be reviewed from time to time for attracting adequate private investments into the hydrocarbon sector, the committee said.