Infra status for oil E&P unlikely

The government on Sunday indicated that it did not favour according infrastructure status to more sectors, such as oil exploration and production (E&P) and LNG importation facilities.

‘‘I think infrastructure status should be restricted to non-tradeable quasi public goods. Neither oil and gas E&P nor the LNG facilities (such as regasification terminals) meet the criteria,’’ Chief Economic Advisor Ashok Lahiri said.

Speaking at Petrotech 2005, Lahiri said the government would be careful of giving infrastructure status to more sectors.

Infrastructure status gives units in the relevant sectors 10-year tax holiday, and special financial regime that would enable them to avail of low cost loans. ‘‘I don’t think that funds are really a problem for oil companies,’’ Lahiri said.