Govt postpones bidding date for 57 oil & gas blocks
The government has again postponed the last date for bidding for 57 oil and gas blocks on offer under the seventh round of New Exploration Licensing Policy to June 30.
By PTI |
NEW DELHI: The government has again postponed the last date for bidding for 57 oil and gas blocks on offer under the seventh round of New Exploration Licensing Policy to June 30.
Bids for NELP-VII were originally due on April 11 but was rescheduled for April 25 to allow firms more time to view data on the blocks on offer. Last month, it was put off to May 16 to allow Finance Minister P Chidambaram to clarify the government's position on tax breaks for exploration and production sector.
However, with Chidambaram leaving it to the courts to decide if production of both oil and gas should be given seven-year income tax holiday, the Petroleum Ministry has once again postponed the bid so that it can pursue the matter with him, official sources said.
The Finance Ministry is of the view that tax breaks available for production of mineral oil is limited only to production of crude oil as it feels mineral oil does not include natural gas.
The Petroleum Ministry feels mineral oil, as defined in various acts like the Oilfields (Regulation and Development) Act of 1948, The Mines and Minerals (Development and Regulation) Act of 1957, The Mines Act of 1952 and the Oil Industry (Development) Act of 1974, include both petroleum and natural gas.
Sources said investors would have taken an adverse view of Finance Ministry's approach to tax breaks, affecting the outcome of NELP-VII. The Petroleum Ministry has now bought more time to convince the Finance Ministry that NELP has since 1999 promised tax breaks for production of both oil and gas and any step contrary to it would cast doubts about fiscal stability.
Bids for NELP-VII were originally due on April 11 but was rescheduled for April 25 to allow firms more time to view data on the blocks on offer. Last month, it was put off to May 16 to allow Finance Minister P Chidambaram to clarify the government's position on tax breaks for exploration and production sector.
However, with Chidambaram leaving it to the courts to decide if production of both oil and gas should be given seven-year income tax holiday, the Petroleum Ministry has once again postponed the bid so that it can pursue the matter with him, official sources said.
The Finance Ministry is of the view that tax breaks available for production of mineral oil is limited only to production of crude oil as it feels mineral oil does not include natural gas.
The Petroleum Ministry feels mineral oil, as defined in various acts like the Oilfields (Regulation and Development) Act of 1948, The Mines and Minerals (Development and Regulation) Act of 1957, The Mines Act of 1952 and the Oil Industry (Development) Act of 1974, include both petroleum and natural gas.
Sources said investors would have taken an adverse view of Finance Ministry's approach to tax breaks, affecting the outcome of NELP-VII. The Petroleum Ministry has now bought more time to convince the Finance Ministry that NELP has since 1999 promised tax breaks for production of both oil and gas and any step contrary to it would cast doubts about fiscal stability.
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