The frozen crystals of gas are tapped to generate energy in some developed countries like Canada. The unexploited resources of gas hydrates along the Indian coastline are enormous. The country's estimated reserves of coal bed methane (CBM), another unconventional source of energy, is only 13.4 trillion cubic feet in comparison. The director general of hydrocarbons, Avinash Chandra, (who admitted that he was unaware of the presence of newspersons, when he made his presentation) told delegates at the Global Indian Entrepreneurs Conference that the country had nine billion tonne of deep water resources of oil and gas spread across 1.4 million square km of the country's coastline.

Some of the deep water oil blocks will be offered to investors throughopen acreage bids and special concessions attached, once the New Exploration and Licensing Policy (NELP) comes into effect. Union minister of state for petroleum, Santosh Gangwar, has gone on record, saying that the NELP would be announced soon.

The NELP, which promises a considerably easy royalty regime for oil exploration companies, offers a further concession for deep water fields. Crude produced from onland oilfields will attract a 12.5 per cent royalty, offshore oilfields will only have to pay 10 per cent royalty, but oil produced from deep water fields will entail a royalty of just five per cent.In the first round of competitive bidding after the NELP becomes effective, 48 offshore and onshore oil reserves will be put on the block.

Oil production will also get exemption from cess and income tax (for the first seven years) in the New Exploration and Licensing Policy.The director general of hydrocarbons, whose presentation emphasised the enormous potentials for investment in the hydrocarbon sector athome, pointed out that the country was a hot-bed of unconventional energy. India harbours the world's fourth largest reserves of coal, making it a potential hub for coal bed methane (CBM) gas.

According to the directorate general of hydrocarbons (DGH), the domestic reserves of coal bed methane were 380 billion cubic metres (or 13.4 trillion cubic feet.) So far nine coal bed methane blocks, covering 2841 sq km, have been identified for competitive bidding. The coal bed methane blocks will attract the same terms available in the NELP, which, said Chandra, ``were the best in the world.'' Till date the US is the only country that exploits coal bed methane on a commercial scale, even though efforts to tap the gas have begun in other coal-bearing countries like China, as well.

Incidentally, the country needs nearly $ 100 billion of investment, just to be able to tap 14 per cent of its recoverable crude oil reserves of 21 billion tonne. Nearly three billion tonne of crude will have to be unearthed to be able tobridge the gap in the imminent demand and supply of oil.The demand for petroleum products is estimated to soar to 115 million tonne by the end of the Ninth Plan, from 80 million tonne at present. The domestic production of crude, now at 35 million tonne, will stagnate at roughly 45 million tonne by then.