Government has constituted a Committee under the Chairmanship of Dr. C. Rangarajan, Chairman, PM’s Economic Advisory Council with the following terms of reference:-

 i) Review of the existing PSCs, including in respect of the current profit-sharing mechanism with the Pre-Tax Investment Multiple (PTIM) as the base parameter and recommend necessary modification for the future PSCs;

 ii) Exploring various contract models with a view to minimize monitoring of expenditure of the contractor without compromising, firstly, on the hydrocarbons output across time and, secondly, on the Government’s take;

 iii) A suitable mechanism for managing the contract implementation of PSCs which is being handled at present by the representation of Regulator/Government nominee appointed to the Management Committee;

 iv) Suitable governmental mechanisms to monitor and to audit Government of India (GOI) share of profit petroleum;

 v) Structure and elements of the Guidelines for determining the basis or formula for the price of domestically produced gas, and for monitoring actual price fixation; and

 vi) Any other issues relating to PSCs.