Reliance KG D6 Basin Story

Director General of Hydrocarbons (DGH) commissioned a committee. As per one

member committee headed by reservoir expert P Gopalakrishnan report which was
submitted to Petroleum and atural Gas !inistry in "#$$% &'( deliberately di) out
less number of wells or it did not di) wells as per Approved Development Plan% which
resulted low production of )as. *his was done deliberately by &'( because it felt )as
prices were too low. *his report was kept under wrap by !inistry.
&'( has dismissed the report findin) and doubted the credentials of its author.
Petroleum and atural )as !in has sou)ht the opinion of (aw and +ustice !in for
imposin) an additional penalty on &'( industries for the shortfall in )as production in
,G D- block durin) "#$".$/. 0arlier to this% DGH disallowed the cost recovery for
producin) only avera)e of "-.#1 mmscmd( million metric standard cubic metres per
day) of )as as a)ainst the tar)et of 2-.1/ mmscmd in "#$".$/.
3ne more P'( was filed before 45 in matter of raisin) the price of ,G basin )as by
almost $##6 from April next year onwards. 45 has )iven - months time to )ovt and
!inistry to file their response to P'(.
Manipur Conflict : Kukis v/s Nagas
,ukis and a)as are two ethnic )roups settled in hill districts of !anipur.
*ension started in $78# because of ethnic claims on overlappin) territories.
a)as nationalism and secessionist movement )rew% and ,ukis population
was seen as hindrance to their political ob9ective. ,ukis were also demandin)
a separate ,ukis state comprisin) all the areas they inhabited in !anipur.
*heir self centred demands led to chain of violent activities form $77" to
$771.
:5 (:nited a)a 5ouncil)% an apex civil body of a)as of !anipur% for
peaceful settlement. ,'! (,uki 'mpi !anipur)% and apex civil body of ,ukis
in !anipur.
:5 claimed that ,ukis had stopped payin) house taxes to a)as. Accordin)
to them% ,ukis were nomads who had settled on their land and hence had to
pay as tenants.
!any ,ukis left their villa)es% and while they were leavin)% a )roup of a)as
intercepted and killed them. *his day% $/ 4eptember is observed as ;lack Day
to remember killin) of over a $## ,ukis on that day of $77/.
A section of ,ukis includin) an armed )roup. :,(<.:nited ,uki (iberation
<ront has demanded to stop the annual commemoration. *his affects the
permanent peace in the society.
*he ,ukis and a)as want their own territory carved out of !anipur% and the
third ethnic )roup called !eiteis is opposin) it.
AS!A: Ar"e# orces Special !o$ers Act %&'(
*he Ar"e# orces )Special !o$ers* Act (AS!A)% was passed on 4eptember $$%
$782% by the Parliament of 'ndia. 't is a law with 9ust six sections )rantin) special
powers to the armed forces in what the act terms as =disturbed areas=.
*he Articles in the 5onstitution of 'ndia empower state )overnments to declare a state
of emer)ency due to one or more of the followin) reasons>
<ailure of the administration and the local police to tackle local issues.
&eturn of (central) security forces leads to return of miscreants?erosion of the
=peace dividend=.
*he scale of unrest or instability in the state is too lar)e for local forces to
handle.
'n such cases% it is the prero)ative of the state )overnment to call for central help. 'n
most cases% for example durin) elections% when the local police may be stretched too
thin to simultaneously handle day.to.day tasks% the central )overnment obli)es by
sendin) in the ;4< and the 5&P<. 4uch cases do not come under the purview of
A<4PA.
A<4PA is confined to be enacted only when a state% or part of it% is declared a
@disturbed area@. 5ontinued unrest% like in the cases of militancy and insur)ency% and
especially when borders are threatened% are situations where A<4PA is resorted to.
;y Act 1 of $71"(in $71"% it is amended)% the power to declare areas as bein)
disturbed was extended to the central )overnment. *he reason for conferrin) such a
power as per =3b9ects and &easons@= appended to the ;ill was that% =,eepin) in view
the duty of the :nion under Article /88 of the 5onstitution% inter alia% to protect every
4tate a)ainst internal disturbance.
<or declarin) an area as a @disturbed area@ there must be a )rave situation of law and
order on the basis of which Governor?Administrator can form opinion that an area is
in such a disturbed or dan)erous condition that use of Armed <orces in aid of civil
power is necessary.
either the soldiers nor their superiors have any trainin) in civilian law or policin)
procedures. *his is where and why the A<4PA comes to bear . to le)itimiAe the
presence and acts of armed forces in emer)ency situations which have been deemed
war.like.
Criticis"> *he Act has been at the heart of concerns about human ri)hts violations in
the re)ions of its enforcement% where arbitrary killin)s% torture% cruel% inhuman and
de)radin) treatment and enforced disappearances have happened.
Santos+ ,e#ge Co""ission on Manipur -ncounter Deat+
*he 9udicial commission set up by the 4upreme 5ourt to make the A<4PA
more humane% and the security forces more accountable.
A hi)h.power commission headed by the retired 4upreme 5ourt 9ud)e%
4antosh He)de was constituted in +anuary "#$/ to probe six encounter deaths
in !anipur.
*he committee% comprisin) former 4upreme 5ourt 9ud)e 4antosh He)de% ex.
505 + ! (yn)doh and a senior police officer found none of the victim havin)
criminal records.
*he committee has su))ested fixin) a time frame of three months for the
central )overnment to decide whether to prosecute security personnel en)a)ed
in extra.9udicial killin)s or unruly behaviour in insur)ency.hit re)ions.
*he 5ommission reco)niAed that A<4PA as an impediment in achievin) peace
in re)ions such as +ammu and ,ashmir and the northeast.
*he commission said the law needs to be reviewed every six months to see
whether its implementation is actually necessary in states where it is bein)
enforced.
About 4ection - of the act% which )uarantees protection a)ainst prosecution to
the armed forces% the report said> B't is not that no action can be taken at all.
Action can be taken but with prior sanction of the central )overnment.
.eevan Re##y Co""ission:
*he 5entral Government accordin)ly set up a five.member committee under the
5hairmanship of +ustice ; P +eevan &eddy% former 9ud)e of the 4upreme 5ourt. *he
panel was )iven the mandate of =reviewCin)D the provisions of A<4PA and adviseCin)D
the Government of 'ndia whether
(a) to amend the provisions of the Act to brin) them in consonance with the
obli)ations of the )overnment towards protection of human ri)htsE or
(b) to replace the Act by a more humane Act.=
*he &eddy committee submitted its recommendations on +une -% "##8. 'n December
"##-% Prime !inister !anmohan 4in)h declared that the Act would be amended to
ensure it was @humane@ on the basis of the +eevan &eddy 5ommission@s report.
Nuclear /eapons Non0!roliferation 1reaty
*he 1reaty on t+e Non0!roliferation of Nuclear /eapons% commonly known as the
Non0!roliferation 1reaty or N!1% is an international treaty whose ob9ective is .
*o prevent the spread of nuclear weapons and weapons technolo)y%
*o promote cooperation in the peaceful uses of nuclear ener)y and
*o further the )oal of achievin) nuclear disarmament and )eneral and
complete disarmament.
A total of $7# states have 9oined the *reaty
orth ,orea acceded to the P* in $728 but never came into compliance% announced
its withdrawal in "##/.
<our : member states have never 9oined the P*> 'ndia% 'srael% Pakistan and 4outh
4udan.
*he treaty reco)niAes five states as nuclear.weapon states>
:nited 4tates% &ussia% :nited ,in)dom% <rance% and 5hina.
<our other states are known or believed to possess nuclear weapons>
'ndia% Pakistan and orth ,orea have openly tested and declared that they
possess nuclear weapons
'srael has had a policy of opacity re)ardin) its own nuclear weapons pro)ram.
Central !oint:
P* non.nuclear.weapon states a)ree never to acFuire nuclear weapons and
'n return P* nuclear.weapon states a)ree to share the benefits of peaceful
nuclear technolo)y and to pursue nuclear disarmament aimed at the ultimate
elimination of their nuclear arsenalsG.
2n#ia Argu"ent:
'ndia ar)ues that the P* creates a club of =nuclear haves= and a lar)er )roup
of =nuclear have.nots= by restrictin) the le)al possession of nuclear weapons
to those states that tested them before $7-1% but the treaty never explains on
what ethical )rounds such a distinction is valid.
'ndia is one of the few countries to have a no first use policy% a pled)e not to
use nuclear weapons unless first attacked by an adversary usin) nuclear
weapons.
'ndia@s then 0xternal Affairs !inister said durin) a visit to *okyo in "##1> ='f
'ndia did not si)n the P*% it is not because of its lack of commitment for non.
proliferation% but because we consider P* as a flawed treaty and it did not
reco)niAe the need for universal% non.discriminatory verification and
treatment% not reco)niAe the need for universal% non.discriminatory
verification and treatment.=
Nuclear Supplier Group )NSG*
Nuclear Suppliers Group (NSG) is a multinational body concerned with reducin)
nuclear proliferation by controllin) the export and re.transfer of materials that may be
applicable to nuclear weapon development and by improvin) safe)uards and
protection on existin) materials.
Me"3ers+ip:
'nitially the 4G had seven members> 5anada% Hest Germany% <rance% +apan% the
4oviet :nion% the :nited ,in)dom% and the :nited 4tates. And it has I1 members.
2n#ia4s Me"3ers+ip:
Durin) a state visit to 'ndia in ovember "#$#% :.4. President announced :.4.
support for 'ndia@s membership in the uclear 4uppliers Group% the Hassenaar
Arran)ement% the Australia Group and the !issile *echnolo)y 5ontrol
&e)ime% =in a phased manner%= and to encoura)e the evolution of re)ime
membership criteria to that end% =consistent with maintainin) the core
principles of these re)imes.=
Durin) a visit to 'ndia in December "#$#% <rench President also expressed his
country@s backin) for 'ndia@s inclusion in uclear 4uppliers Group.
*he :, has for a lon) time been a supporter of 'ndia@s membership of the
uclear 4uppliers Group.
2n#ia 5 6S Civil Nuclear Deal
'n "##-% 'ndia and the :nited 4tates finaliAed an a)reement to provide 'ndia
with :4 civilian nuclear technolo)y. :nder the deal 'ndia has committed to
classify $I of its "" nuclear power plants as bein) for civilian use and to place
them under 'A0A safe)uards. 'A0A also welcomed the deal.
:4 5on)ress also approved this. Despite its status outside the uclear on.
Proliferation *reaty% 'ndia was )ranted these transactions on the basis of its
clean non.proliferation record% and 'ndia@s need for ener)y fuelled by its rapid
industrialiAation and a billion.plus population.
3n $ Au)ust "##2% the 'A0A approved the 'ndia 4afe)uards A)reement

and on
- 4eptember "##2% 'ndia was )ranted the waiver at the 4G% meetin) held in
Jienna% Austria% to carry out nuclear commerce.
*he :nited 4tates is bound by the Hyde Act with 'ndia and may cease all
cooperation with 'ndia if 'ndia detonates a nuclear explosive device.
2n#ia 0 Australia
As of +anuary "#$$% Australia% a top three producer and home to worlds lar)est known
reserves% has continued their refusal to export :ranium to 'ndia because it has not
si)ned the P* despite diplomatic pressure on their part. 'n I December Australia@s
Prime !inister +ulia Gillard overturned its lon).standin) ban on exportin) uranium to
'ndia. 4he said =He should take a decision in the national interest% a decision about
stren)thenin) our strate)ic partnership with 'ndia in this the Asian century%= and said
that any a)reement to sell uranium to 'ndia would include strict safe)uards to ensure it
would only be used for civilian purposes% and not end up in nuclear weapons.
!akistan:
*he 4G Guidelines currently rule out nuclear exports by all ma9or suppliers to
Pakistan and 'srael. Attempts by Pakistan to reach a similar a)reement have been
rebuffed by the :nited 4tates and other 4G members. *he ar)ument put forth is that
not only does Pakistan lack the same ener)y reFuirements but that the track record of
Pakistan as a nuclear proliferators makes it impossible for it to have any sort of
nuclear deal in the near future.
Gas !ricing in 2n#ia
*here are multiple pricin) mechanisms in 'ndia for natural )as. *his can be divided
into two cate)ories>
$. AP! Gas (Administered Pricin) !echanism)
". on.AP! Gas
*here is differential pricin) for different sectors. 4ubsidiAed sectors such as power
and fertiliAer )et relatively less prices as compared to other sectors. Also% re)ion
specific pricin) exists with orth 0astern states )ettin) )as at relatively cheaper
prices as compared to other parts of the country.
*he price of AP! )as is set by the )overnment principally on a cost.plus basis. <or
non.AP! or free.market )as% this is a)ain divided into two cate)ories . (i) imported
(iFuefied atural Gas ((G) and (ii) domestically produced )as from ew
0xploration (icensin) Policy (0(P) and pre.0(P fields.
Administered Pricin) !echanism (AP!)
Gas produced from existin) fields of the nominated blocks of 35s (ational 3il
5ompanies)% 3'( K 3G5% is bein) supplied predominantly to fertiliAer plants%
power plants% court.mandated customers% and customers havin) a reFuirement of less
than 8#%### standard cubic metres per day at AP! rates. *he Government has fixed
AP! )as price in 'ndia with effect from +une "#$# at LI."?mmbtu except in the
ortheast% where the AP! price is L".8"?mmbtu% which is -#6 of the AP! price
elsewhere% the balance I#6 bein) paid to 35s as subsidy from the Government
;ud)et.
*hese )as.producin) blocks were allotted to ational 3il 5ompanies on a nomination
basis% under the tax.royalty re)ime. As most of the )as produced is )oin) towards
heavily subsidiAed sectors like fertiliAer% power and small and medium buyers% the
impact of price variations is borne by 35s. However% 35s producin) such )as are
deprived of increases in )as prices. *his affects their investment in exploration and
production.
on.AP! Gas produced by 35s from ominated <ields
ational 3il 5ompanies (35s)% 3G5 K 3'(% are in principle free to char)e a
market.determined price for )as produced from new fields in their existin) nominated
blocks. However% the Government has issued a pricin) schedule and )uidelines for
commercial utiliAation of non.AP! )as produced by 35s from their nominated
blocks.
Pre.0(P Gas Pricin)
5ertain blocks where discoveries were made by 35s were auctioned to private
sector 0KP companies to overcome fundin) constraints and lack of advanced
technolo)ies. :nder these P45s . Panna.!ukta% *apti (P!*) and &avva% the )as
produced has to be sold to the Go' nominee (GA'() as per the price formula specified
in the Production 4harin) 5ontract. *he P45s for Panna.!ukta K *apti were
executed on $" December $77I and that of &avva on "2 3ctober $77I. 'n case of
Panna.!ukta K *apti P45s% the price formula for )as is linked with an internationally
traded fuel oil basket% with a specified floor and ceilin) price of :4L ".$$?mmbtu and
:4L /.$$?mmbtu respectively. *hese P45s further have a provision to revise the
ceilin) price after 1 years from the date of first supply% to $8#6 of 7#6 of the fuel oil
basket (avera)e of the precedin) $2 months). Hith this revision% the revised ceilin)
price in case of Panna.!ukta )as is :4L 8.1/?mmbtu and in case of *apti% it is :4L
8.81?mmbtu. *he present price of the &avva field is :4L /.8?mmbtu and that of
&avva satellite is :4L I./?mmbtu.
Pricin) under 0(P
*he Production 4harin) 5ontracts (P45) si)ned under ew 0xploration (icensin)
Policy (0(P) provide for approval of the price formula or basis by the Government%
before the sale of natural )as by the 5ontractor. Gas price for 0(P ;locks is
determined throu)h an armMs len)th process by contractor. *he price of &'( ,G ;asin
)as was fixed at LI."?!!;*: ex.,akinada in "##1. *he price is valid till !arch
"#$I. After this new )as pricin) formula will be used.
&e.)asified (G (&.(G)
At present% &.(G is imported by Petronet (G (imited (P(()% Gu9arat 4tate
Petroleum 5orporation (G4P5)% GA'( and HaAira (G Private (imited (H(P(). *he
purchase price of lon).term (G imported from Natar for Petronet (G has been
linked to +apanese 5rude 5ocktail (+55) and varies on a monthly basis. 't is sold at
prices fixed by resellers. 4pot &(G prices are based on market conditions.
!lease go t+roug+ e#itorial 1+e ,in#u on %&
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