Govt to clarify tax break on natural gas for Pre-NELP
Sources have said that the Oil Ministry is likely to clarify the definition of mineral oil including natural gas.The Finance Minister had mentioned in the Budget that the seven-year Tax Holiday is only for mineral oil and does not include natural gas. However, a Cabinet note clarifies natural gas as part of mineral oil say sources.The Cabinet Note is believed to have discussions on what is needed to attract investment in India, sources claimed. Besides that, it lists about a dozen enactments, which defines mineral oil to contain natural gas, said sources.One of the immediate impacts of this probably would be on Reliance Industries’ D6 block, which is subject to a court case in Mumbai, and should start production by the end of this month. Clarification is only for the first six rounds of NELP blocks as well as the blocks that were leased out prior to 1999 before NELP started. Tax Break is not applicable for NELP VII Blocks, said sources.
