The Ministry of Petroleum and Natural Gas had invited comments from citizens and stakeholders on a draft policy for extraction of shale gas. Prayas Energy Group submitted its comments and suggestions on the draft policy, which were classified into four categories: contractual issues, governance issues, socio-environmental issues and other issues. The comments on contractual issues attempt to minimize ambiguity in the contract or bidding process, and thus make it a genuine level playing field for all bidders. The governance issues highlighted ways in which transparency of the bidding process and management of a shale oil/gas block can be improved, and pointed out some other potential difficulties that need to be overcome given the weak governance regime in the country. As shale gas extraction is a water-intensive and potentially water-polluting process, the comments on socio-environmental issues pointed out the potential problems with the current policy and some suggestions on how they can be overcome.

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