Include exploration & production in NEIIP list, say energy companies. Energy firms such as ONGC, Oil India, Jubilant Energy and Assam Company have urged the government to include oil and gas exploration and production (E&P) business in the list of industries getting fiscal incentives in the North East. The North East Industrial and Investment Promotion Policy (NEIIP) provides for fiscal incentives to industrial units in the region, but “inadvertently” excluded E&P, former chairman of ONGC and Ficci hydrocarbons committee chairman RS Sharma said. The policy was launched in 2007 to provide fiscal incentives that included 100% income-tax and excise duty exemptions for 10 years. The policy also provides capital investment and interest subsidies. Its benefits also include reimbursement of insurance premium. But industries in the negative list are not eligible for these incentives. “Certain industries are in the negative list of NEIIP, including petroleum oil or gas refineries. But refineries should not be confused with E&P. Hence this anomaly needs to be corrected,” Sharma said. Ficci director general Arbind Prasad has taken up the matter with the secretaries in the Ministry of Development of North Eastern Region and the Department of Industrial Promotion & Policy. “It appears that the intent of the policy was to exclude oil refineries from availing incentives. But due to the ambiguous language, it is being misinterpreted as to exclude crude oil and natural gas produced by upstream companies,” Prasad said. “To further clarify, there is no concept of gas refineries. The gas industry is only involved in exploration and production of gas,” he added. The North East region has huge hydrocarbons potential and an unambiguous fiscal incentive package would attract investments, Ashu Sagar, secretary general, Association of Oil & Gas Operators said. According to industry estimates, the region has about 5.75 billion barrels of oil reserves and more than 21 trillion cubic feet gas. According to the oil ministry, the Assam-Arakan basin is highly prospective that covers an area of 116,000 sq km. “Members of AOGO will soon approach the oil ministry, urging it to help E&P companies in getting the NEIIP benefits,” Sagar said. Many companies operating in the region are considering investing in setting up small liquefied natural gas plants provided they get some fiscal incentives, a senior executive of a state-run oil company said.