New Delhi: mjunction services limited, India’s largest B2B e-commerce company, has been appointed by the Directorate General of Hydrocarbons (DGH) to build a platform for them to enable e-bidding, e-evaluation of bids, and e-allocation of oil and gas fields. This platform will aid in transparent allocation of the country’s natural resources, and help the country to reduce its oil import bill by $8 billion annually, as per Petroleum & Natural Gas Ministry officials.
mjunction CEO Mr Vinaya Varma said, “I am happy that in addition to managing e-auction of spectrum for the Government of India, we have also been entrusted with the responsibility of building this platform. We have built up strong competencies in design and conduct of large value e-auctions, and I want to thank DGH for this nationally important contract.”
DGH is the nodal agency under the ministry of Petroleum and Natural Gas for allocation of oil and gas fields to interested bidders for exploration and production activities. Mr Varma said that mjunction will customise its e-bidding software to provide facilities to electronically receive and evaluate bids and to automatically allocate oil and gas fields under the Hydrocarbon Exploration and Licensing Policy (HELP) framework, which was introduced in 2015. HELP replaced the 18-year-old New Exploration Licensing Policy (NELP), and is expected to remove its various limitations which led to inefficiencies in exploiting natural resources.
This new policy will not only enhance domestic oil and gas production, it will bring substantial investment in the sector and generate sizeable employment, Ministry officials informed. The current import in energy sector, in oil, gas and petroleum sector is 82%, and after implementation of HELP, at least 10% reduction in import is expected by 2022, they added.
HELP has introduced a uniform licence for exploration and production of all forms of hydrocarbon, an open acreage policy, an easy to administer revenue sharing model and marketing and pricing freedom for the crude oil and natural gas produced.