Implementation of works in the NELP-I blocks has begun in right earnest immediately after issuance of the petroleum exploration license. The tempo of works in some of these blocks has already set a unique record in the exploration activity in the country as 7 seismic ships were working at a time in the offshore blocks awarded by the government of India. Never before more than two seismic ships had operated in the country simultaneously. In addition to the seismic campaigns undertaken in the NELP blocks, exploratory drilling activities, which usually takes upto 2 years after completion of seismic surveys, have also been carried out in one of the offshore blocks. Encouragingly enough, results of these initial exploratory efforts have already led to the discovery of a "gas strike" in offshore deepwater areas of the Krishna-Godavari (KG) basin. While this discovery in the KG deepwater area, Annapurna, is yet to be fully assessed, efforts would be continued in future to properly develop and make the discovery productive. All these efforts reflects the great boost received so far in the exploration activities of the country through the NELP route.

    With the favourable "industry-response" in NELP-I, the Government of India announced NELP-II in December 2000 offering 25 exploration blocks spreading over 11 basins and covering 9 onland blocks, 8 shallow water offshore blocks (upto 400 metre bathymetry) and 8 deepwater blocks (beyond 400 metre bathymetry). The Government has since improved upon NELP-I and introduced certain new aspects in NELP-II like making the information or data package available in CD ROMs, bringing in more transparency in bidding process by making public the broad parameters for bid evaluation, introducing few modifications in the model production sharing contract and creating a special interactive web site for promotion the Nelp-II Blocks. The promotional programme of the NELP blocks organized through road shows in Delhi and different international venues was also aimed. They achieved the objective of sensitizing the investors and the technology providers about the availability of the potentials of the blocks and the market. The NELP-II offer has received encouraging response as bids for 23 of the 25 blocks offered were received on March 31,2001. Production Sharing Contracts of these 23 blocks were signed in a record time of about three and a half months on July 17, 2001.

    Two more rounds of NELP may possibly be announced by the Government with each round consisting of 20 to 30 blocks. Of these two expected rounds, the first would in all probability be floated before March 2002. The work programme of both these rounds for Phase-I & II is likely to be implemented during the X Plan period. Thereafter, the available acreages would be considered for offer under a new open acreage system in which the exploration blocks would be on offer for bidding on a round-the-year basis.