Petroleum and Natural Gas Minister M Veerappa Moily said today his ministry is working on a "positive and forward-looking" shale gas policy that would be placed before the Union cabinet shortly.

"In India, we have the potential (vis-a-vis shale gas)", he told reporters here, adding the proposed policy on exploitation of shale gas would be taken before the Cabinet for approval in a couple of days.

"It (shale gas) is an important source and potential of oil world over," Moily added.

Shale gas or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface is the new focus area in the US, Canada and China as an alternative to conventional oil and gas for meeting growing energy needs.

According to available data, six basins -- Cambay (in Gujarat), Assam-Arakan (in the North-East), Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo-Gangetic basins -- hold shale gas potential.