The Hydrocarbon Exploration and Licensing Policy (HELP):

  1. is based on profit sharing model
  2. provides with uniform license for exploration and production of all forms of hydrocarbon
  3. is based on concept of Open Acreage Policy 
  4. provides exemption from cess and import duty 

Which of the above statements are correct?

Answer: [B] Only 2, 3 & 4

First statement is incorrect because the policy is based on revenue sharing model and not on profit sharing model. The New Exploration Licensing Policy (NELP) was based under the profit sharing methodology, which makes it necessary for the Government to scrutinize cost details of private participants and this led to many delays and disputes. Under the new regime of the Hydrocarbon Exploration and Licensing Policy (HELP), the Government will not be concerned with the cost incurred and will receive a share of the gross revenue from the sale of oil, gas etc. This is in tune with Government’s policy of “Ease of Doing Business”.

This question is a part of GKToday's Integrated IAS General Studies Module