Government of IndiaMinistry of Finance Budget 97-98

Budget Speech - PART A

Oil and Gas

  1. The country's demand for petroleum products is growing at over 8% per annum, which is faster than the growth of domestic supply. We cannot choke this growth. At the same time, we must reduce our dependence on imported petroleum products. There is no real alternative to increasing the supply. Just 6 of the 26 basins that have potential for oil and gas in India have been explored, and that too only partially. The Minister of State for Petroleum and Natural Gas will be making a detailed statement on the new exploration licensing policy (NELP) shortly. The highlights of the policy are the following:

  2. In order to ensure that adequate domestic refining capacity is created, I propose to allow refineries to import capital goods during the Ninth Plan period at a concessional duty on par with the fertiliser sector. Domestic capital goods suppliers will also get deemed export status.

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