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• The shale gas policy is proposed to be announced tentatively by the end of next fiscal, Union Minister of Petroleum and Natural Gas Jaipal Reddy informed the Rajya Sabha on Tuesday.

• Based on the findings of studies on the potential of resources, the policy is to be finalised after incorporating views of the ministries/departments concerned, he said in a written reply. “Therefore, the announcement of shale gas policy will depend on the completion of the consultation process with the authorities concerned, including environmental safeguards required to be put in place under the regulatory regime for shale gas exploration and production,” the minister said.

• According to an official release, Mr. Reddy said that considering the importance and potential of alternative source of oil and gas, the government has initiated steps for identification of prospective areas and assessment of shale gas resources in the country as well as to formulate the policy. In this regard, a memorandum of understanding was signed between the Indian and the U.S. governments on shale gas resources in November 2010 during the visit of the U.S. President.

• Under the MoU, both the countries would cooperate in various areas of shale gas development, including shale gas resource assessment and technical studies on shale gas exploration in India Accordingly, United States Geological Survey carried out shale gas resource assessment in three Indian basins (KG, Cauvery and Cambay) in January this year. Further, the Directorate-General of Hydrocarbons has assigned Central Mine Planning & Design Institute, Ranchi, with the task of identification of areas and assessment of shale gas potential in Damodar and Sohagpur sedimentary basins.

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