The OIDB has been entrusted with the responsibility to render, in such manner, to such an extent and on such terms and conditions, as it may deemed fit, financial and other assistance for the promotion of all such measures as are, in its opinion, conducive to the development of oil industry. The Oil Industry (Development) Act, 1974 provides for collection of cess as a duty of excise on indigenous crude oil and natural gas.The cess has been levied on crude oil, from time to time, at the following rates:

     Rs.60     per tonne w.e.f. 23^rd July, 1974

     Rs.100   per tonne w.e.f.13^th July, 1981

     Rs.300   per tonne w.e.f. 15^th February, 1983

     Rs.600   per tonne w.e.f. Ist March, 1987

     Rs.900   per tonne w.e.f.  Ist February,1989 to 28^th February 2002.

     Rs.1800 per tonne w.e.f. Ist March,2002

     Rs.2500 per tonne w.e.f. Ist March,2006*

Out of such proceeds, the funds, as Central Government thinks fit, are made available to the Board after due appropriation by the Parliament for utilization towards various activities envisaged under the Act. Since inception and up to 31^st March 2010, the Central Government has collected more than Rs.87700 crore as cess (Annexure-I). Out of this, OIDB has received an amount of Rs.902 crore till date. This amount together with internal receipts generated as interest income on loans given to various oil sector companies and short-term investment of surplus funds has contributed to Oil Industry (Development) Fund to accumulate to Rs.9130 crore approximately as on 31^st March, 2010.

* The Central Government has, in the public interest, limited the duty of excise on crude oil production from the fields under the Production Sharing Contracts in respect of 26 fields to Rs.900 per tonne as against the rate of duty of excise of Rs.2500 per tonne specified vide Notification of the Government of India in the Ministry of Petroleum & Natural Gas No. S.O. 253 (E) dated 28.02.06.