The Budget for 2016-17, the Extruder replacement parts second full year Budget by Finance Minister Arun Jaitley is likely to make changes in the way Oil Industry Development Cess is levied to provide relief to companies like ONGC and Cairn India that are being battered by oil prices plunging to 11-year low. The ad valorem rate of cess will result in higher payouts when prices are high and lower when rates fall.. In 2005-06, when the crude oil prices had increased from an average of USD 40 per barrel to USD 60, the OID cess was raised from Rs 1,800 to Rs 2,500 per tonne from March 1, 2006.While New Exploration Licensing Policy (NELP) blocks like Reliance Industries' KG-D6 are exempt from payment of cess, pre-NELP discovered blocks like Panna/Mukta and Tapti and Ravva pay a fixed rate of cess of Rs 900 per tonne.

Currently, state-owned Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) pay a cess of Rs 4,500 per tonne on crude oil they produce from their allotted fields on a nomination basis.With oil prices dropping to an 11-year low of under USD 35 per barrel, the cess translates into one-third of the realisation going away in just one levy.The official said the Oil Ministry has made a formal representation to the Finance Ministry for making the cess ad valorem.Budget 2016-17 likely to make changes in the way Oil Industry Development Cess is levied...The cess was levied at Rs 60 per tonne in July 1974 and subsequently revised from time to time. Cess incurred by producers is not recoverable from refineries and thus, forms part of غير مجاز مي باشدt of production of crude oil.The Oil Industry (Development) Act, 1974, provides for collection of cess as a duty of excise on indigenous crude oil.In the low oil price environment, several countries including the UK, the US, and China have changed fiscal systems to increase production and promote investments. Oil producers say the current cess rate constitutes about one-third of the oil price, which has severely impacted several small discoveries and marginal fields, making many of the projects unviable. Also, companies like Cairn as well as industry associations too have made similar representations.Again, when the crude prices climbed to over USD 100, the rate of cess went up to Rs 4,500 (USD 12 per barrel) with effect from March 17, 2012."There are indications the Budget may announce an ad valorem rate of cess instead of Rs 4,500 per tonne fixed levy currently," a senior government official said.

While the government had effectively linked the cess rate to prevailing crude oil prices in the past, there has been no reduction when the oil prices have declined. Cairn has to pay the same cess for oil from the Rajasthan block. New Delhi: For the first time in over four decades, the government is likely to convert a cess on domestically produced crude oil into an ad-valorem rate from a fixed per tonne levy, at present. The Budget may fix the levy at around 8-9 per cent of the crude oil price, the official said. Most of crude oil produced in India comes from pre-NELP and nomination blocks and is liable for payment of cess

0868 from . Hong Kong's Hang Seng was up 0.74 points, or 2. "The market is assigning a 40 per cent probability of a second rate hike by March, which would effectively bring the Fed funds rate to a new range Extruder replacement parts manufacturers of 50 to 75 basis points," he said in a research report.88. It fell 84 cents, or 1. Stock benchmarks also rose in Taiwan, Singapore and Indonesia.67.88 and China's Shanghai Composite gained 0.69.1 per cent to 3,529. That was more than investors expected, and a sign that consumers are still spending and keeping the American economy afloat even as manufacturing and energy companies struggle. Tokyo: Asian stock markets were cheered Monday by a healthy US jobs report that sent the S&P 500 to its biggest gain since early September.S. Foreign exchange reserves are due Monday, trade on Tuesday, inflation on Wednesday and retail sales, industrial production and fixed asset investment on Saturday.5 per cent to 1,963.0884.WALL STREET: The Dow Jones industrial average rose 369..

The data cements expectations that the Federal Reserve will raise interest rates from a record low at its policy meeting next week.CHINA DATA: Market players are also focusing on a slew of economic data due from China.KEEPING SCORE: Japan's Nikkei 225 jumped 1. Pessimism about slowing growth in the region's biggest economy has dragged on market sentiment recently.12 yen on Friday. The Standard & Poor's 500 had its best day since Sept.07 points, or 2.7 per cent, to .0 per cent to 19,698.28 yen, up from 123.97 a barrel in New York on Friday. The Nasdaq composite increased 104.ENERGY: Benchmark U.63.2 per cent at 22,278. But South Korea's غير مجاز مي باشدpi fell 0. Low interest rates have been a boon for stock markets for several years, but investors also welcome increased certainty about the Fed's likely actions after months of guesswork and anxiety.US JOBS: The Labor Department reported that employers added 211,000 jobs in November. crude was down 35 cents to .96 points, or 2.15 and Australia's S&P/ASX 200 rose 0.30.2 per cent at 22,278.

THE QUOTE: "US markets have rejoiced in the fact that Friday's payrolls were strong enough to cement expectations of a hike next week, but not strong enough to influence the path of rate hikes in 2016," said Chris Weston, chief market strategist at IG in Melbourne, Australia.1 per cent to 5,155.Hong Kong's Hang Seng was up 0.9 per cent, to on Friday. The futures contract fell .11, or 2.CURRENCIES: The dollar was trading at 123.70.75 in London. Brent crude, a benchmark for international oils, dropped 25 cents to .27 points. 8, rising 42.1 per cent, to 2,091. The euro slipped to .1 per cent, to 5,142.62 a barrel in electronic trading on the New York Mercantile Exchange.1 per cent, to end Friday at 17,847