GN Bureau | September 24, 2015
State-owned oil producers ONGC and Oil India along with private sector Cairn India have asked the government to cut cess on crude oil in view of slump in prices.
The Oil Industry (Development) Act, 1974 provides for collection of cess as a duty of excise on indigenous crude oil. Cess incurred by producers is not recoverable from refineries and thus forms part of cost of production of crude oil. The cess was levied at Rs 60 per tone in July 1974 and subsequently revised from time to time.
Most of crude oil produced in India comes from pre-NELP and nomination blocks and is liable for payment of cess.
While New Exploration Licensing Policy (NELP) blocks like Reliance Industries' KG-D6 area are exempt from payment of cess, pre-NELP discovered blocks like Panna/Mukta and Tapti and Ravva pay a fixed rate of cess of Rs 900 per ton.
However, these major producers want the government to levy ad-valorem rate of cess which will result in higher payouts when prices are high and lower payout when rates fall. Currently, ONGC and OIL pay a cess of Rs 4,500 per ton on crude oil they produce from fields given to them on nomination basis. Cairn has to pay the same cess for oil from Rajasthan block.
Their association, PetroFed last week wrote to revenue secretary Hasmukh Adhia and oil secretary KD Tripathi seeking levy of 8 per cent cess on price of crude oil realised.
The Railways was unable to meet its operational cost of passenger and other coaching services. During 2014-15, there was a loss of Rs 33,821.70 crore on passenger and other coaching services. The freight services earned a profit of Rs 38,312.59 crore which indicated that 88.28 percent
Seasoned BJP parliamentarian Nand Kumar Sai, who took charge as the chairperson of the National Commission for Scheduled Tribes (NCST) on February 28, has his work cut out for him. Archana Mishra caught up with Sai, 71, on his first day in office where he
Should there be automatic termination as member of parliament if that person takes oath as minister/chief minister in a state?
When the truth was a few steps away from Modi’s gaze In November 2014, prime minister Narendra Modi made his first visit to his constituency Varanasi and launched a massive cleanliness drive at Asi ghat, which was covered in mud and silt. When locals sa
India has slipped one spot in the Human Development Index 2016. India’s HDI value for 2015 is 0.624 — which put the country in the medium human development category - positioning it at 131 out of 188 countries and territories. Between 1990 and 2015,
An appeal was made to PSUs to contribute funds under their CSR Scheme towards Health Minister’s Cancer Patient Fund-CSR for treatment of poor cancer patients. India Infrastructure Finance Company Limited (IIFCL) contributed an amount of Rs 7.5 crore in 2015-16.