India has reduced royalty rates for crude oil and natural gas production, aiming to accelerate domestic exploration and output. The biggest cuts apply to deepwater and ultra-deepwater fields, where the new framework can offer zero royalty for an initial period. The policy is designed to make difficult reserves more economically viable and attract investment into domestic energy supply.
India’s decade-long push to expand oil and gas production has delivered little on the ground. In 10 years, the government awarded 172 blocks and saw extensive exploration, yet only one marginal field produces. Experts cite geological hurdles and a shift of risk to companies, deterring global capital, while state-run firms dominate auctions—leaving imports as the default supply.
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