|
Lok Sabha
The Government has collected a net cess amount of approximately Rs.55,967 crore from crude oil as on 31.03.2005.
Cess on crude oil was imposed in 1974 by the Government under Section 15 of Oil Industry(Development) Act, 1974 with the objective to provide financial assistance to the oil industry as defined under Section 2(k) of the Act which includes, inter-alia, production of mineral oil, refining, marketing of all products downstream of an oil refinery; and the production of fertilizer and petrochemicals, and all activities directly or indirectly connected therewith.
Utilisation of cess on crude oil is governed by the provisions of Section 2(k) of the Oil Industry Development Act, 1974. The term “oil industry” includes fertilizer and petrochemicals for the purposes of the Act. The expenditure incurred so far on the oil industry is in excess of the cess collection. Till date, approximately Rs.3250 crore as loans and Rs.11 crore as grants have been released by the Oil Industry Development Board to the oil sector PSUs/other organisations for the development of the oil industry in the Assam Region.
This information was given by Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas and Panchayati Raj, in a written reply in the Lok Sabha today.
RCJ/GS/Cess on Petroleum (25.08.05)
|
