Cairn India knocks FinMin's door for boost to oil hunt
Stuck on approvals from the oil ministry, Cairn India has now approached the finance ministry for speedy approvals to its explorations plans in Rajasthan, Anupama Airy reports.business Updated: Nov 05, 2012 01:56 IST
Stuck on approvals from the oil ministry, Cairn India has now approached the finance ministry for speedy approvals to its explorations plans in Rajasthan.
The company currently operates close to 25% of India's domestic oil production from its three oil producing fields in onshore Rajasthan, offshore Andhra Pradesh and Gujarat.
Cairn India chairman Navin Agarwal in an October 25 letter to the finance secretary Arvind Mayaram said its Rajasthan oil block is stuck for approvals even as timely production can translate into Rs. 30,000 crore of annual revenues to the national exchequer.Stating that Cairn India has contributed over Rs. 10,000 crore to the central and state exchequer during the first six months of the current financial year, Agarwal said timely approvals can reduce India's oil import dependency by $8.5 billion.
"Last year, the company and its joint venture partners helped reduce the national crude oil import bill by $6 billion," Agarwal added.
Stating that both the Production sharing contract (PSC) and the Mining Lease for the Rajasthan oil block have enabling provisions that allow carrying on exploration in the development area, Agarwal said the exploration work is stuck (for) expeditious approvals from the government to undertake exploration in Rajasthan.
"This project will further our nation's quest towards energy security and would spur the economic growth, as the central government, Rajasthan government and ONGC would receive over 80% of the net revenues through profit petroleum, royalties, cess and taxes," he added.