india

Updated: Feb 19, 2019 23:42 IST

The Union cabinet on Tuesday cleared a proposal to allow state-run Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) to induct private sector partners for production enhancement in their oil and gas blocks.

“For production enhancement, bringing new technology, and capital, …[they] will be allowed to induct private sector partners,” a statement issued after the cabinet meeting said.

The objective of the policy is to attract new investment in exploration and production (E&P) sector, it said.

“Considering stagnant/declining domestic production of oil and gas, rise in import dependence and decline in investment in E&P activities, the need to bring further policy reforms was felt,” the statement said.It also said ONGC and OIL will prepare enhanced production profile to enhance production from existing nomination fields. Nomination fields are given to the two public sector companies without any competitive bid. The decision will facilitate the government and the state-run explorers to implement recommendations of a high-level committee that proposed to farm-out 97 exploration oil and gas fields from public sector ONGC and OIL to private energy firms, two ONGC officials said requesting anonymity.

The Union cabinet also approved a new policy to boost electronics manufacturing by 2025 in the country and to generate 1 crore jobs.

“We have a target of $400 billion [Rs 26 lakh crore] turnover by 2025. We want to achieve a 32% growth rate. It will give jobs to 1 crore people. We want to make India manufacturing and export-oriented [country]….,” Union minister Ravi Shankar Prasad said at a briefing here. He said technologies like artificial intelligence and defence electronics etc. would also be promoted.