The government may give a ‘Make in India’ push to oil and gas explorers, as it is considering a proposal to almost halve cess on domestic crude oil to encourage exploration activity and allow COVID-hit oil producers to protect their margins.
Cess on domestic crude is currently levied at the rate of 20 pc of the value of oil. Sources said the proposal by the Union Oil Ministry is to reduce it to 10 pc. If this is accepted by the Finance Ministry, the changes may be announced as part of Budget 2021-22 proposals, sources said.
Though the larger view is in favour of halving the cess, the exact quantum would be worked out later.