We are trying to make it (policy on tax holiday on production of crude oil and natural gas) as clear and transparent as possible. A transparent policy will be brought out when the new government is formed, Economic Advisor to Ministry of Petroleum and Natural Gas, Archana Mathur, said.
According to the NELP policy, prospective bidders for oil blocks have been guaranteed of a seven year tax holiday on oil production.
Income tax authorities have not permitted the same relief on gas production because of scarcity of specific inclusion of the term natural gas in the Income Tax Act.
Mathur said greater clarity will come very soon. She said the government is doing its best to woo the private sector to come and invest in exploring India’s sedimentary basins.
We do need private sector participation and foreign investment, Mathur said.
