The government today extended the last date of bidding for the ninth round of oil and gas block auction to March 28 apparently after Finance Minister Pranab Mukherjee announced changes in tax sops.
"The last date for submission of bids for New Exploration Licensing Policy (NELP) round IX blocks is extended till 1200 hrs on March 28, 2011," a statement on NELP-IX website said. "Bid opening will commence at 1330 hrs on the same day."
Bids for 34 blocks in 10 sedimentary basins was to close on March 18.
In all, 8 blocks in deepwater areas, 7 in shallow water and 19 in onland areas are on offer in NELP-IX which was launched in October last year. The total area on offer is around 89,000 square kilometres.
Mukherjee had in the Budget for 2011-12 taken away tax breaks on oil produced from areas that will be awarded in NELP-IX.
Exemption from payment of Income Tax on earnings from production of mineral oil for seven years will be available only to blocks that are awarded by March 31, this year.
The extension of the bid would allow companies to frame their bids keeping the changed tax rule in mind, an oil ministry official said.
