Cabinet clears cess, royalty waiver on enhanced hydrocarbon production

The Policy, having a sunset clause, will be effective for 10 years from the date of its notification

In a major boost to hydrocarbon exploration in India, the Union Cabinet on Tuesday cleared policy to promote enhanced and improved recovery of oil and gas from existing fields that may unearth assets to the tune of Rs 50 trillion.

"The measure to incentivise Enhanced Recovery (ER), improved Recovery (IR) and Unconventional Hydrocarbon (UHC) production methods will bring in Rs 50 trillion of additional resources in next 10 to 20 years," petroleum minister Dharmendra Pradhan said addressing a press conference.

The policy will avail 50 per cent waiver on cess for oil and 75 per cent waiver on royalty for