India Provides Tax Incentives for Shale Exploration

Indian government has decided to exempt from custom duty specific goods used for shale exploration such as drilling rigs, chemicals, according to Business Line newspaper. 

“Full exemption from basic customs duty and additional customs duty for specified goods required for operations has been extended for the national oil companies, which have been allowed to undertake shale exploration,” the financial daily quoted a Petroleum & Natural Gas Ministry official.

India last month cleared a shale policy which allows national oil companies ONGC and Oil India to explore for shale resources in the acreages it currently owns.

Some other products that fall under the exempted category are land seismic survey equipment and accessories, data acquisition and processing, all types of oilfield chemicals, including synthetic products used in petroleum operations and water injecting items, Business Line said.

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