Addressing a press conference in the capital on Monday, Union petroleum minister, Ram Naik said that the government will remove ATF from APM by the end of the current fiscal when it will be priced at import parity.

"The budget may see enabling provisions for making that happen," the minister said. APM would be phased out by March 31, 2002, by gradually doing away with subsidies in the consumer prices of petroleum products and rationalising the customs and excise duty structure, the minister said, adding that the budget may also see some steps being taken in rationalising excise and customs duty.

Mr Naik also disclosed that the petroleum ministry will invite bids for the exploration of coal bed methane (CBM) in Gujarat, Jharkhand, Madhya Pradesh, Bihar and West Bengal in three months, besides offering fresh oil and gas blocks under the third round of the New Exploration Licensing Policy (NELP) by December-end.

"The government will offer nine blocks of CBM for exploration in three months," the minister said.

While Gujarat, Bihar and West Bengal have agreed on the blocks to be offered under the first CBM offering, discussions are being held with the Jharkhand government on identifying the prospective blocks, the minister said, adding that under the present dispensation, states have the first right of coal reserves.

Thegovernment is also planning to come out with the third round of exploration blocks for oil and gas by December 2001, Mr Naik said.

Presently, seismic studies are being carried out to ascertain high potential blocks which would be offered for exploration to both the public and private sector by the year end, the minister added.