Business Daily from THE HINDU group of publications
Monday, Mar 24, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Monday, Mar 24, 2008 ePaper | Mobile/PDA Version |
|
|
|
|
|
|
|
|
Home Page
-
Petroleum Government - Policy Industry & Economy - Taxation
Richa Mishra New Delhi, March 23 The Government has decided to de-link the issue of cess on crude oil from the other approvals required by Cairn India for laying a pipeline to transport the produce from Rajasthan to the delivery point in Gujarat. This has been done to avoid further delays in the development work connected with this oil field. A senior Petroleum Ministry official told Business Line it was decided to deal with the cess issue separately and not delay the other development work. The cess is imposed by the Government to fund the oil industry development. There has been a disagreement between the licensee of the field, ONGC, and the joint venture partner Cairn on who would pay the cess. The Petroleum Ministry has been maintaining that the consortium partners of Rajasthan oil fields — Cairn and ONGC — would have to share the amount of cess. Cairn is the operator of the block with 70 per cent stake while ONGC has a 30 per cent interest in the block. Cairn has been disputing the Government’s demand for cess under the Oil Industry Development Act (OIDA). The Empowered Committee of Secretaries had opined that the issue of cess could be considered once the production commences. Cairn plans to start producing oil from Rajasthan in the second half of 2009. The cess amount is calculated at approximately Rs 2,500 per tonne of oil at the current rate. However, if the earlier rate is taken, then it would be around Rs 900 per tonne. Cairn and ONGC will lay a 585-km pipeline to the new sale point and include the pipeline cost in the field development plan that is recoverable from sale of oil. The major construction contracts for both the pipeline and upstream developments have already been awarded to key Indian companies. Cairn India raises Rs 2,500 cr thru pref issue Secys panel clears Cairn pipeline project More Stories on : Petroleum | Policy | Taxation | Cairn India Ltd
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
 |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
