02-04-01 Despite the second round of NELP bids not going quite as planned, India is preparing to launch a third round of bids for new blocks by December this year. "The government now expects to invite bids under the third round of New Exploration Licensing Policy by the end of this year. The third round will include both on land and offshore blocks, including deep water blocks," petroleum and natural gas minister Ram Naik said.
Directorate General of Hydrocarbons (DGH) is currently acquiring seismic data along the East Coast and the southern offshore tip of India. This will enable new blocks to be carved out with entirely new data, Naik added.

The government will also re-examine the incentives offered to E&P companies. At present, the government offers fiscal incentives such as tax holidays, duty-free import of capital goods, international prices for crude and lower royalty rates. It also exempts successful bidders from a signature bonus, upfront payments and a discovery bonus. Naik also admitted that the blocks offered in the second round had failed to enthuse major international oil companies as hoped, but attracted smaller companies.