Govt waives customs duty for ONGC, Oil India

GN Bureau | January 11, 2016


#ONGC   #Oil India   #PSU  

The government has exempted customs duty on goods imported for producing oil and gas from 69 oil fields of ONGC and Oil India.

This aims at boosting domestic production of oil and gas. “Nil customs duty will apply to goods imported in connection with petroleum operations undertaken under specified contracts under the Marginal Field Policy (MFP),” a revenue department notification said.

The government is planning to auction 69 small and marginal fields of ONGC and Oil India which have 89 million tonnes of oil and gas reserves in them.

These fields could not be monetised over the years due to reasons such as high cost and constraints on technology. Under the new policy, exploration companies will be able to submit bids for exploiting these oil fields. These oil fields have not been developed earlier as they were considered as marginal fields, and hence were of lower priority.

With appropriate changes in policy, it is expected that these fields can be brought into production. The earlier contracts were based on the concept of profit sharing. Under the profit sharing methodology, it became necessary for the government to scrutinize cost details of private participants and this led to many delays and disputes.

Comments

 

Other News

Lohani is new chairman of railway board

Air India CMD Ashwani Lohani was appointed the Chairman of Railway Board on Wednesday after incumbent AK Mital put in his papers. Mital tendered his resignation to railway minister Suresh Prabhu following two derailments in Uttar Pradesh.   Lohani, a 1980-batch office

Land swap proposal between AAI and MMRDA approved

 The government on Wednesday gave its approval for transfer of 40 acres of Airports Authority of India’s (AAI) land at Dahisar to Mumbai Metropolitan Region Development Authority (MMRDA) for its metro shed, swapping with 40 acres of Maharashtra government land at Gorai in Mumbai.  

Loss making Bharat Wagon and Engineering Co. to be shut

 Ministry of railways’ proposal of closing down Bharat Wagon and Engineering Company Limited (BWEL)  has been accepted by the cabinet committee on economic affairs, chaired by the prime minister Narendra Modi on Wednesday.   A total of 626 employees of BWEL will b

Suresh Prabhu hints he wants to quit, Railway board chief resigns

Railway minister Suresh Prabhu on Wednesday dropped a hint that he has offered to resign while Chairman Railway Board AK Mital tendered his resignation following two major train accidents.   The resignation offers come just three days after three top railway officials were se

EESL becomes world’s largest street light company

 Around 30 lakh LED street lights, spread across 50,000 km of roads, have been installed across the country under the centre’s street lighting national programme (SLNP). With this, Energy Efficiency Services Limited (EESL), under ministry of power, has become the world’s largest street lig

Soil Health Cards scheme moves at snail’s pace

An ambitious scheme to provide Soil Health Cards for 14 crore land holdings spread across the country seems to be moving at a painfully slow pace.   Prime minister Narendra Modi on August 21 reviewed the progress and he was informed that 16 States/UTs have completed the first



Video

Prabhu offer to resign

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter