With the help of the tax department, public sector oil marketing companies have identified nearly 7.9 lakh domestic LPG consumers whose annual taxable income is more than `10 lakh but are still enjoying subsidy and have decided to discontinue the sop for them, reports Siddhartha P Saikia in New Delhi. Earlier, some 1.05 crore relatively well-off households had given up the subsidy, responding to a call from government.
Sources told FE the oil firms zeroed in on the 7.9 lakh consumers by September 30 either by self-declaration after the local fuel distributor asked for their income status or through verification by the income tax department. “The LPG distributors have shared details of customers with us, suggesting they could be in the `10 lakh-plus taxable income category,” said an official from an OMC.
Earlier, reservoir-management firm Gaffney, Cline & Associates had said that the high-pressure-high temperature-low-permeability block gas-in-place of 14.4 tcf of which 7.6 tcf is recoverable.
FE reported on September 6 that GSPC is considering hiving off its deep-water block in the KG Basin into a separate company which would facilitate tax neutrality for GSPC for the deal. Also, ONGC as the buyer will practically benefit from deduction on all exploration and drilling expenditure incurred by GSPC in the block.
GSPC has spent whopping R14,641.92 crore till March 2015, which exceeds the field development plan target of R13,122.46 crore, to develop a single field of the block — Deen Dayal West (DDW). For the entire block, which has other prolific areas such as the DDW Extension and Six Discoveries, an expense of R19,576 crore has been incurred till March 2015. Currently, the output from the block, which is under ‘test-production’, is hovering less than 0.5 million metric standard cubic metres per day.