New Delhi: The government has postponed the last date of bidding for oil and gas blocks offered under the latest round of NELP to April 25, even as industry cried foul at Finance Minister P Chidambaram's proposal to end tax holidays for the sector.

The last date for bidding for 57 areas offered under the seventh round of New Exploration Licensing Policy (NELP) has been changed from April 11 to April 25, said S Sundareshan, Additional Secretary, Ministry of Petroleum and Natural Gas, at a CII event here today.

But Chidambaram's Budget proposal to end seven-year tax holiday for production of petroleum (oil) and natural gas may prove to be a dampener to the government's efforts to attract at least four billion dollar investment in oil and gas exploration.

EP companies, particularly foreign players, said the proposal would be a dampener and impact investor sentiments as seven-year tax holiday has been the salient feature of all NELP bid rounds, including the latest one.

"It (end of tax holidays) won't stop us from bidding but it will change the way we will be bidding," BP Exploration Director for South Asia Jonathan Evans said.

Sundareshan said the Ministry of Petroleum and Natural Gas has taken up the issue with the Finance Ministry as the new proposal was contrary to the fiscal regime promised in NELP rounds.

"We need a stable fiscal regime. Too much tinkering is not good for investor sentiments, particularly when we are looking at increasing self-sufficiency in oil and gas," V Raghuraman of CII said.

Niko Resources Vice-President Larry Fisher said the move would change the way companies construct their bid.
Source : PTI