New exploration licensing policy (NELP) in India Muhammad Azhar *,**,***,**** *Associate Professor (Economics), Centre of West Asian Studies, Aligarh Muslim University, Aligarh-202002, India **Formerly Reader, Academy of Third World Studies, Jamia Millia Central University, New Delhi, India ***Formerly Senior Research Associate, Centre of West Asian & African Studies, School of International Studies, Jawaharial Nehru University, New Delhi, India. ****Formerly Consultant, Indian Council for Research on International Economic Relations, New Delhi, India Email: azharmuh@gmail.com Abstract In India, the exploration and production (E&P) activities in petroleum sector had been the protected domain of the public sector oil companies. The government of India has been implementing the poli- cies of liberalisation and reforms in the Indian economy for two decades. This was extended to the petroleum sector also. The exploration policy was also revised and new exploration licensing policy was introduced in 1999. Foreign and private companies were also permitted to participate in the ensuing bidding rounds. Hundred per cent foreign direct investment (FDI) was permitted in E&P sector. Many incentives were extended to the investors. The bid evaluation system was made trans- parent, and level playing field was promised to all participating companies, domestic or foreign, public or private. Since then, eight rounds of NELP have taken place. After the ninth round, the government is contemplating to introduce open acreage licensing policy. The article provides an assessment of the New Exploration Licensing Policy in India. 1. Introduction All petroleum and natural gas resources, both onshore and offshore, are national property in India. The oilfield act of 1948 resulted in the nationalisation of all such natural resources (The Economic Times, 2005a). This, in turn, gave the Indian state total control over this crucial natural resource. In consonance with the economic policy pursued in India, the public sector undertaking Oil & Natural Gas Commission (ONGC) was mainly responsible for the exploration and production (E&P) activities relating to the oil and gas (Farooqui, 1999). Later on with the continuous implementation of liberalisation and reforms in the Indian economy, ONGC was rechristened and restructured as Oil and Natural Gas Corporation. The near total monopoly of ONGC in India’s E&P activities of 174 © 2011 The Author. OPEC Energy Review © 2011 Organization of the Petroleum Exporting Countries. Published by Blackwell Publishing Ltd, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA.