Report of the committee on the production sharing contract mechanism in petroleum industry
The Government of India constituted this committee to look into the Production Sharing Contracts (PSCs) mechanism in petroleum industry. The exploration and production policy for hydrocarbons is a cornerstone of our energy security, since India has a large and growing demand for energy and substantial hydrocarbon reserves that remain to be explored, appraised and developed. Production Sharing Contracts (PSCs) entered into between the Government and oil companies for the purpose of exploration and production of hydrocarbons constitute the principal means of achieving our overall policy objective of greater self-reliance in this sector. The committee has aimed at arriving at a mechanism that would lead to greater synergy between the Government and oil companies, thereby enhancing domestic production, simplifying monitoring procedures, and incentivising investments in the exploration and production of hydrocarbons, including from the private sector.