ONGC to shell out Rs 1600 crore | india | Hindustan Times
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ONGC to shell out Rs 1600 crore

ONGC will have to shell out about Rs 1600 crore more to the Government as a fallout of increase in cess on domestic crude oil.

india Updated: Feb 28, 2006 15:59 IST

Oil and Natural Gas Corp (ONGC), India's largest crude oil producer, will have to shell out about Rs 1600 crore more to the Government as a fallout of increase in cess on domestic crude oil.

Finance Minister P Chidambaram, presenting the Budget for 2006-07, raised the cess on domestic crude oil to Rs 2500 per tonne from the present Rs 1800 per tonne.

"The increase in cess would mean an additional payout of about Rs 1600 crore," ONGC Director (Finance) RS Sharma said.

At current rates, ONGC pays about Rs 4200 crore towards the Oil Industry Development Board (OIDB) cess.

Sharma said the increase in service tax rate from 10 to 12 per cent would mean an additional Rs 50 crore annual outgo.