Union Budget: Gas pipelines exempted from taxes

New Delhi, Feb 28: To encourage exploration activities and to help sustain the energy security of the country, the government today said pipelines carrying gas would get a tax exemption for 10 years.

In his budget speech, Finance Minister P Chidambaram said the energy sector is high on the government's agenda.

In the six rounds of New Exploration Licensing Policy (NELP) so far, 162 production sharing contracts have been awarded. Indian and foreign companies have already made an investment of Rs 97,000 crore in exploration. Similarly, he said, after three rounds of bidding, 23 coal bed methane blocks have been awarded for exploration.

The oil ministry is also seeking cuts in taxes and duties levied on retail petroleum products as well as energy exploration.

UNI