Government Offers Royalty Sops To Boost Oil & Gas Output

摘要

"Concessional royalty at the rate of 10%, 20% and 30% has been proposed for category-l, II and III basins respectively," a senior government official told ET. The government has rolled out major incentives in royalty rates to attract investments into the oil and gas exploration and maximise production. The government has given its go ahead to concessional royalty if production commences before four years for onland/ shallow water blocks and before five years for deepwater/ ultra deepwater blocks from the effective date of contract, top officials said. "Concessional royalty at the rate of 10%, 20% and 30% has been proposed for category-l, II and III basins respectively,"a senior government official told ET. "In case commercial production is not commenced In the time period mentioned, then royalty at existing rates will be applicable." Even additional gas production from APM (administered pricing mechanism) fields would be incentivised in the form of royalty reduction at the rate of 10% of applicable royalty on additional production over and above business as usual scenario, officials said.