Oil and gas auction might be put on hold.

With the UPA II-regime getting into exit mode, the tenth round of oil and gas auctions are likely to be postponed till a new government comes to power.

It is not only the ministry of finance that has shied away from taking a call on whether a new revenue-sharing model should be adopted for oil and gas blocks. Even the Planning Commission has asked the petroleum ministry to put the process on hold.

Adding to this, the Narendra Modi-led Gujarat government had created a roadblock for the auctions - New Exploration Licensing Policy (NELP) - by withdrawing clearance for nine blocks in the Cambay basin, seeking a higher revenue share from the Centre. 'The finance ministry is yet to give us a reply on what to do on the policy front. Moreover, the Planning Commission has asked us to put the process on hold till the time clarity comes on whether to go ahead with a revenue-sharing model or not,' a senior petroleum ministry official told Business Standard.

BS