Free Press Journal

Government notifies incentives to oil cos in pre-NELP blocks

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New Delhi: The government has notified a new policy requiring ONGC and OIL to pay royalty and cess tax only to the extent of their equity holding in certain pre-1999 oil and gas fields.

The ‘Policy Framework for Streamlining the Working of Production Sharing Contracts in respect of Pre-NELP and NELP Blocks’ was notified in the Gazette of India on Tuesday, according to the Gazette notification. Till now ONGC and OIL had to pay 100 per cent royalty and cess tax on 11 pre-NELP fields that were given to private firms prior to 1999.