Announcing this here today, Petroleum and Natural Gas Minister V K Ramamurthy said the terms and conditions would provide a level-playing field to the national oil companies, private and foreign companies. The roadshows for these blocks would begin in the last week of January in six cities worldwide, Ramamurthy said. Out of the 48 blocks, 26 blocks will be offered in offshore area, 12 deep water blocks along the east coast and 10 onshore blocks in the first round, he announced at a news conference held here today.

Roadshows would begin in last week of January 1999 ending in February and would be held at Delhi, London, Houston, Calgary, Singapore and Perth, Ramamurthy said. After the roadshows, companies would be given three months to submit their bids and the bid closing date was likelyto be May 15, 1999.

The main features of the NELP would include tax holidays for seven years and would be allowed from the commencement of production with fiscal depreciation provisions. Cess on crude oil had been abolished and royalty payment would be on ad valorem basis -- 12.5 per cent for onland exploration and 10 per cent for onshore areas.

Successful bidders would be allowed to market crude oil and gas in the domestic market. Companies would be exempt from paying import duty for goods imported for petroleum operations. The minister also announced a separate tax code and a revised model contract would be drawn up for the NELP.

Private companies would be allowed to have 100 per cent participating interest as against up to 40 per cent reservation for the national oil companies in the earlier proposed policy. The Government has also decided to do away with any preferential offer of acreage for exploration to the national oil companies (NOCs). The NOCs will now have to compete with other companies forgetting acreage.

The total area of 10 onshore blocks offered is 1,18,625 square km, the area of 26 offshore blocks up to 400 metres of water depth is 2,28,742 square km and the total area of deep water blocks being offered beyond the water depth of 400 metres up to a water depth of about 3,000 metres was 1,15,748 square km.

Subsidy cut on kerosene ruled out

NEW DELHI: Petroleum Minister V K Ramamurthy today ruled out any cut in subsidy on kerosene for the time being while keeping options open on the cooking gas (LPG) as diesel prices would be brought down within a week in tune with depressed international prices. Announcing this at a press conference, Ramamurthy said the entire oil pool deficit and other liabilities amounting to Rs 17,500 crore would be wiped out by the end of the current financial year. This would be after absorbing the subsidy burden of Rs 7,200 crore on account of kerosene and LPG. Oil pool deficit which stood at Rs 12,984 crore at the beginning of the current year was reducedto Rs 7,000 crore by October-end and "we hope to totally wipe it out by end of March 1999," the minister said. "We will also clear the dues of the refineries and other national oil companies amounting to Rs 4,500 crore on account of interest liabilities this year," he added.