ECS declines delegation of complete powers to DGH for approving excess cost claims by NELP block operators

The Empowered Committee of Secretaries (ECS) has declined the proposal sent by the Ministry of Petroleum and Natural Gas (MoPNG) to delegate complete power to the Directorate General of Hydrocarbons (DGH) for approving or rejecting the excess cost claims by New Exploration Licensing Policy (NELP) oil and gas block operators. The MoPNG had proposed the delegation of powers to the DGH for 164 contracts signed between rounds 5 and 9 of the NELP citing duplication of jobs and delays in approvals. The ECS has agreed to remove the additional layers of the decision-making process. However, it refrained from giving complete power to the DGH and has decided to grant it power to approve additional costs not exceeding 10 per cent of the original estimates.