New Delhi: Taking serious note of the political and economic consequences of the crude oil price hike, the Centre plans to bring an Integrated Policy for promoting exploration of alternative fuel resources like methane bed, gas hydrate and others. And to motivate private players for participation, it has decided to give attractive tax redemption also.

According to sources in the Union Ministry of Petroleum, government is making serious efforts to explore new alternative gas sources. The Ministry has decided to promote Bed Methane (CBM), Shell gas and Gas Hydrate under one national policy.

Recently, Director of General Hydrocarbon (DGH) has submitted report on the three alternative fuels where it has clearly mentioned that by using advanced technology and methods India can emerge as an important producer of Shell and Hydrate gas.

Studies reveal that Krishna-Godavri (KG) Basin and Andaman and Nicobar can have massive Gas Hydrate resources. Implementation of the new policy will promote investment by foreign companies and the use of latest technologies for fuel extraction. In past ten years, Central government has spent Rs 213 crores for exploring gas hydrate reserves.

The new policy will also focus on Shell gas, which according to the DGH report, has large reserves in West Bengal, Rajasthan and Northeastern states.