By Nidhi Verma
NEW DELHI, Feb 21 (Reuters) - India on Thursday revampedrules for future exploration and production of oil and gasblocks in its efforts to attract private investment and increasedomestic production.
India imports four out of every five barrels of crude oil itconsumes and is likely to shell out more than $100 billion onoil purchases in 2018/19.
"The emphasis of the new rules is for raising hydrocarbonproduction," Dharmendra Pradhan, India's oil minister said inNew Delhi.
Under the new rules, producers will be given pricing andmarketing freedom that is currently non-existent in natural gasblocks in India. Explorers will also be given financialincentives for early production from their blocks, Pradhan said.
"Fiscal incentive is also provided on additional gasproduction from domestic fields over and above normalproduction," a government statement said.
Prime Minister Narendra Modi, who is seeking re-election ina few months, has targeted a 10 percent reduction to India'sdependence on imported crude by 2022.
However, India's dependence has increased from 78 percent in2014/15 to an estimated 84 percent in 2018/19, government datashows.
Pradhan said that state-owned companies Oil and Natural GasCorp and Oil India will be allowed to inductprivate players to enhance production from its existing blocksand bring in new technology and capital.
The new rules will be largely applicable on 19 basins and onfuture licensing rounds, he added.
India has 26 sedimentary basins, of which only seven areproducing.
Encouraging private partnership can lead to more discoveriesand higher production, local broker Emkay said in a report.(Reporting by Nidhi VermaWriting by Promit MukherjeeEditing by David Goodman)
