Transparent Internal Governance
DGH being a prime government agency, has always insisted on efficient and transparent
internal governance. DGH is currently involved in important and critical E&P related
business activities where both government and the E&P operators are equally important
stake holders. In view of above, transparencies in executing DGH's internal business
processes has become an area of prime focus for DGH.
Below is a brief of key business processes which may be prone to corruption and
therefore require procedures in place giving yield to a transparent and corruption
Production Sharing Contracts (PSC)
DGH has an extremely transparent procedures in dealing with PSC monitoring. The
file movement is initiated by the nodal officer of the concerned block and sent
to the concerned departments for obtaining their inputs/comments/views. There is a coordinator for
various operators or group of operators working in India. After obtaining the relevant
views/comments from concerned departments the PSC case file moves through the coordinator to the
chief coordinator and then finally put up to the Director General. Depending upon the merit
of the case,the decision is either taken at DGH or is forwarded to to the
Ministry of Petroleum and Natural Gas with the appropriate recommendations from
DGH for final decision.
Issuance of Essentiality Certificate
PSC stipulates duty free import of goods / services used for petroleum operations
being carried out by E&P companies operating in India. The Customs department allows
the duty free imports on the basis of certification by DGH. The role of DGH is limited
to certification that the intended goods or services are being imported by E&P companies
essentially for petroleum operations being undertaken under PSCs or otherwise.
With regard to this activity the EC department has a single front window to receive
the applications. To issue a single EC concerned nodal officers and technical officers
are involved. Further the entire work flow is fully transparent backed up by an
online system to facilitate the entire EC issuance activities. All applications
received with proper documentations are processed and EC are issued with 3 days
of receipt to avoid any possible manipulation. All ECs above the value of Rs 2 Crores are
approved by the Director General.
The process is system oriented and cases are processed online since August 2008
involving minimum human intervention to avoid delays.
The system is transparent and status of application can be viewed and monitored
online by the applicant.
Procedure for certification is as under:
Awarding of licensing blocks like NELP & CBM
- Online receipt of application in DGH
- System automatically allots application to concerned Nodal officer, technical officer
- issuing authority and dealing person
- Recommendations/comments/approvals of concerned are received electronically online
on system. The approvals go to the dealing person (Issuer)
- In clear cases , automatically generated Email goes to companies for submission
of hard copies for verification.
- The electronic application is matched with hard copy when received.
- In case of no discrepancy and no comments or deficiencies, In majority of cases(~98%)
ECs is issued the same day of receipt of hard copy.
For the award of blocks under New Exploration Licensing Policy (NELP) and Coal Bed
Methane (CBM), DGH follows equally transparent procedures. For each block bidders
are invited to the bid opening room which is fitted with cameras that transmit the
proceedings to the plasma screens fitted at different places in the venues where
bid opening takes place for anyone to watch. The sealed bids are opened in front
of all the bidders and copy of the biddable items is provided to all the bidders
for the block. The system is so transparent that the bidders know the provisional
results of the evaluation on the same day itself.
Procurement of Goods & Services
For procurement of goods and services, DGH follows the normal tendering procedures
laid down by the Govt. of India for PSUs and government agencies for maximum transparency
and to ensure that there are no malpractices.