The Hindu Business Line : Deora seeks tax holiday for natural gas production

Check on prices: The Union Minister of Petroleum and Natural Gas, Mr Murli Deora, after the meeting with the Finance Minister, Mr Pranab Mukherjee, in the Capital on Monday.

Our Bureau

New Delhi, June 15

The Petroleum Minister, Mr Murli Doera, during his pre-Budget meeting with the Finance Minister, Mr Pranab Mukherjee, sought a seven-year income-tax holiday on natural gas production similar to the one currently being provided for crude oil.

Retail pricing of petro products was also discussed at the meeting.

“We are trying to see that the retail prices of petro products don’t go up. We discussed everything including subsidy related issues,” Mr Deora told reporters here.

Mr Deora said he had appealed to the Finance Minister for providing a tax holiday on natural gas. Asked about the Finance Minister’s response, the Petroleum Minister said that Mr Mukherjee was “sympathetic” to it.

In the wake of rise in international crude oil prices, both the Ministers also discussed the issue of retail pricing of petro products.

While maintaining that the volatility in the international crude prices was a cause for concern, Mr Deora said, “I cannot indicate any time frame (on price revision), as it is the Finance Minister who has to take the final decision.”

The Government is “seriously concerned” about the rising crude prices in international market, he added.

“But, we also want to wait for some time. We have to see what are the possible solutions before us. Where the money will come from — by oil bonds, increase in price, upstream contribution, or even reduction in consumption. The Finance Minister will decide at the time of Budget,” Mr Deora said.

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