Core sector output declines by 1.5 pc in Nov due to fall in coal, crude oil and natural gas production
The growth of eight core industries contracted by 1.5 per cent in November due to a fall in coal, crude oil and natural gas production, government data released on Tuesday showed. The output of eight core sector industries — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — had grown 3.3 per cent in November last year. The core sector for October had contracted to 5.8 per cent from the 5.1 per cent contraction seen in September. The eight core industries comprise 40.27 per cent of the weight of items included in the index of industrial production (IIP). “The combined index of eight core industries stood at 126.3 in November which declined by 1.5 per cent as compared to the index of November 2018. Its cumulative growth during April to November was zero per cent,” according to an official statement. While crude oil output growth was minus 6 per cent over November last year, coal output growth stood at minus 2.5 per cent year-on-year. Natural gas production declined by 6.4 per cent, steel production by 3.7 per cent and electricity generation by 5.7per cent. However, petroleum refinery production increased by 3.1 per cent, fertilisers production by 13.6 per cent and cement production by 4.1 per cent.
Oil Minister Dharmendra Pradhan to preside over signing of contracts for OALP IV
Oil Minister Dharmendra Pradhan will today preside over signing of contracts between the government of India and winners of oil and blocks under the fourth round of Open Acreage Licensing Program (OALP). The fourth round of OALP offered the lowest number of blocks (7) and also received a tepid response from investors as compared to earlier oil and gas bidding rounds held under the revised policy. While private players did not participate under the fourth OALP round, government-owned Oil and Natural Gas Corporation (ONGC) bid for seven blocks and Oil India bid for one block. In the second round , 14 blocks attracted 33 bids while in the third round, 23 blocks received 42 bids. In the first, 110 bids were received for 55 blocks on offer. In three rounds together, 87 blocks have been awarded. “The OALP bid rounds till date have received overwhelming enthusiasm from various stakeholders of E&P industry with 4 bidding rounds being completed till date. A total of 87 Oil and Gas blocks have been awarded till date covering an area of approximately 1,18,280 Sq. Kms. Now Government is going to award 7 blocks offered under OALP bid round IV, thereby adding another 18,510 Sq. Kms. to exploration map of India,” Directorate General of Hydrocarbons (DGH) said in a statement Government launched the fourth bid round on 27 August 2019 under a revised policy framework. Under the new changes, the emphasis is on work programme, with no requirement for revenue share quotations for less explored Category II and III basins, a cap of 50 per cent for revenue share in Category I basins has been introduced. Also, an alternative dispute resolution mechanism is being implemented and a single window system of application for online clearances has also been put in place. Under OALP, a company has the freedom to carve its own blocks and let the government know about its interest in the block, which would then put that up for auction. The company, which had initially shown interest in the block, gets some preferential points during bid evaluation.