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Cabinet changes pre-NELP oil, gas block terms to boost output
New Delhi, July 18 (IANS) The Cabinet on Wednesday made changes to the pre-1999 New Exploration Licensing Policy (NELP) oil and gas contracts to allow proportionate sharing of royalty and cess between the operators of an area, without putting the entire burden on state-run explorers ONGC and Oil India.
Briefing reporters here after a Cabinet meeting, Petroleum Minister Dharmendra Pradhan said the Cabinet Committee on Economic Affairs (CCEA) also extended the policy of marketing and pricing freedom to natural gas produced from difficult deep-water areas to cover fields in the northeastern region.
“In order to incentivise some of the pre-NELP private bidders, the government had put all the responsibility of paying royalty and cess on the ONGC (Oil and Natural Gas Corp) and OIL (Oil India Ltd),” Pradhan said.
“This, however, led to a decline in the field output and the ONGC felt that paying 100 per cent of the levies was making these unviable.
“CCEA has decided that statutory levies including royalty and cess will now be shared in proportion to the PI (participating interest) of the contractor in the pre-NELP exploration blocks,” he said.
Noting that the Cabinet decision would impact seven fields, the Minister that the levy paid in this manner has been made cost recoverable with prospective effect. Thus, the statutory levies can now be first recovered from the sale of hydrocarbons before sharing the profits with the government.
“This will benefit pre-NELP exploration blocks in which fresh investment for additional development and production activities is expected as sharing of royalty and cess, and cost recoverability of same will help in making additional investment commercially viable for licencee companies ONGC and OIL,” he said.
In a related decision, the CCEA has extended income tax benefits to all the 28 oil and gas fields awarded before NELP came into force in 1999.
Noting that 13 of these blocks did not have the tax benefits earlier, Pradhan said: “All pre-NELP blocks will now get exemptions under Section 42 of the Income Tax Act.”
This provision allows companies to claim 100 per cent of the expenditure incurred under a production sharing contract as tax deductible.
Pradhan also said that based on the recommendations in the “Hydrocarbon Vision 2030 for North-East”, the government has extended timelines for the exploration and appraisal period in 10 operational blocks of the region considering its geographical and logistical challenges.
“The exploration period has been increased by two years and appraisal period by one year,” he said.
“Also, to stimulate natural gas production in the region, the government has allowed marketing, including pricing freedom for natural gas, to be produced from discoveries which are yet to commence production as on July 1, 2018.”
The CCEA also relaxed the timeline from seven days to 15 days for giving written notice to notify the occurrence of a “force majeure” crisis event in a production sharing contract.
“The approvals given today (Wednesday) are expected to help in ensuring the expeditious development of hydrocarbon resources,” a Petroleum Ministry statement said.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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