Cabinet Committee clears billion dollar investment

New Delhi, Apr 23 ( TruthDive): The Cabinet Committee cleared investments worth $2.71 billion and $1.9 billion would be spent on exploration in the next 3-5 years in oil exploration and production in 25 blocks.

The defence ministry had imposed stringent restrictions asking companies not to locate pipelines or structures on the sea surface. Yet another condition was that such pipelines  located even under sea surface should be beyond 100 meters outside the Defence Research and Development Organization (DRDO), IAF and Navy danger zone areas.

Nine blocks were cleared without any conditions and 16 blocks were cleared with relaxed conditions. 31 blocks came for review, said an official statement but did not elaborate on which blocks were subjected to restrictions. Reliance Industries-BP combine thirteen blocks, Govt owned ONGC 15 blocks, Santos of Australia 2 blocks and 1 block of Cairn India-led consortium.

Investments worth $2.71 billion were blocked in these 31 blocks due to security restrictions imposed by the defence ministry. Commerce Ministry had already cleared one block as it had come into SEZ area. 13 power projects with an investment of about Rs 33,000 crore awaiting environmental ministry were cleared.

$13.42 billion had already been spent and another $2.5 billion has been estimated to be be spent. This exercise was taken after FM sat with banks on projects that were stalled due to ministerial clearances.

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