Flagging concerns that cess proceeds collected by the Centre is not being fully utilised for the identified purpose, the Comptroller and Auditor General of India (CAG) said only Rs 15,506 crore or 21% of the total receipt of Rs 72,484 crore from cess on crude oil have been spent for development of oil industry during FY16-FY20.
Oil Industry (Development) Act, 1974 provides for establishment of Oil Industry Development Board (OIDB) for the development of Oil Industry and for that purpose levy a duty of excise on crude oil and natural gas as a cess. CAG audit scrutiny for the period FY10 to FY20, showed that no funds from cess proceeds have been transferred to OIDB as against the total cess collection of Rs 1,28,461 crore.
