Allow market-based pricing for gas, Reliance Industries urges Rangarajan panel
company has argued that restoring production to higher levels would need higher investments, which has been contested by the oil ministry.
Based on the fiscal model suggested by the Rangarajan committee, the share of profit petroleum to the government will commence from the first day of production instead of the current one where profits commence when all contract costs have been recovered. It has also recommended that the revenue which the contractor will earn even after this will be shared with the government. Finally, it has also asked the government to levy income tax on the full extent of the profit after a seven-year tax holiday. Prasad has also asked for an import price parity regime on the lines of the oil sector for gas saying the landed cost of the fuel must be the base of the calculations. The committee is expected to submit its final report before the end of December.
Seeking new format
* RIL, however, wants pattern of profit sharing mode undisturbed
* PMEAC chief-led panel is looking into design of Production Sharing Contracts in hydrocarbon
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