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.
PM Narendra Modi’s yet another niftily acronymed scheme, UDAN – short for Ude ‘Desh Ka Aam Naagrik’ and otherwise called ‘Regional Connectivity Scheme’ in officialese – got off to a flying start on Thursday. Modi formally launched a flight from Shimla to Delhi, and
He accompanied his father to film studios in Chennai and helped him in designing sets, but Thota Tharrani wanted to be an artist. So he studied mural painting and print-making, but as luck would have it, he finally returned to tinsel town. And the world soon took note. In Mani Ratnam’s pa
Is the AAP headed for a split?
A sale-purchase agreement was signed between Numaligarh Refinery Limited (NRL) and Bangladesh Petroleum Corporation (BPC) for supply of high speed diesel (HSD) through the proposed 131 km Indo-Bangla friendship pipeline. The agree
The dismal performance of the Congress in the Municipal Corporations of Delhi elections forced party chief Ajay Maken to announce his resignation, ending an energetic effort to revive the party in the national capital. Ajay Maken, now 53, had taken over as the chief
The BJP’s clean sweep is not just a referendum on the Arvind Kejriwal government, but also could mark the beginning of the end of one of India’s youngest political parties, the Aam Aadmi Party (AAP). After the Bharatiya Janata Party’s massive win in the UP assembly elections, th