Jun. 24 – The Indian government is considering a series of tax holidays, including a seven year tax break, to assist with the development of exploration in its oil and gas sectors and lessen its dependence on imports.

Currently three quarters of India’s oil and gas consumption is imported, and the decision to approve tax breaks has been under review after the collapse of the nations National Exploration Licensing Policy (NELP) last year.

At immediate stake is the on-going development of the country’s KG Basin, operated in the private sector by Reliance Industries, as well as various state owned oil and natural gas corporations.

The KG Basin, which commences production later in the year, should provide up to 40 percent of India’s gas needs when it reaches full capacity. An eighth round of NELP negotiations is due to be launched, with the tax break issue much to the fore.

Bidders have welcomed the NELP scheme as it has provided a far more open and transparent scheme for bidding for tenders than had otherwise been the case.