Oil and Natural Gas Corporation (ONGC) bagged 44 out of total 45 oil and gas exploration blocks with its partner BHP Billiton and GVK Power. The Cabinet Committee on Economic Affairs, on Thursday, gave permission to start oil exploration. 

The meeting was held under the chairmanship of Prime Minister, Manmohan Singh. The government has not awarded block in the Mumbai basin to Cairn Energy India due to lower bidding. The oil blocks are awarded on the basis of New Exploration Licensing Policy (NELP) VII. Directorate General of Hydrocarbons had received 181 bids from 95 companies for 45 blocks. A total of 57 blocks are offered under Nelp-VII, including 12 deep water blocks, seven shallow water and 26 on-land blocks by the government.

Government’s initiative would reduce country’s dependence on oil and gas import, which draws maximum money from state exchequer for foreign payments. Minister of State in Prime Minister’s Office, Prithviraj Chauhan said the government has awarded the blocks with consultation of union Law Ministry, completing all legal formalities. Petroleum Secretary, R. S. Pandey said that government would start bidding for remaining blocks in February 2009.