Petro ministry seeks sops for old refineries

The petroleum ministry has asked the finance ministry to grant excise or other type of concessions for the old refineries (located particularly in the north-east) in order to compete with the modern refineries, which were more efficient.

Talking to newsmen, after inaugurating a seminar on petroleum resource management in New Delhi Tuesday morning, the Petroleum Minister Ram Naik said he had discussed several Budget-related issues with Finance Minister Yashwant Sinha Monday and a presentation was also made by the petroleum ministry on the issues concerning the hydro-carbon sector.

He said that he had also requested the finance minister to grant excise and custom duties concessions for the refinery sector.

Besides, both Naik and Sinha also discussed the revenue related issues like contribution of petroleum sector in the national exchequer and dividend to be given by the public sector companies in the next financial year.

During the discussion, fiscal issues related with gasoline and ethonol were also discussed by both the ministers. These issues were necessary in view of the fact that the petroleum ministry in principle had decided to encourage the use of gasolin and ethonol in the automobile sector.

The discussion between the two leaders also centered around Mashelkar Committee report, which had recommended fiscal concessions to refineries for producing higher grade petrol and diesel in order to contain emissions within the prescribed limits.

The refining industry required a fund of Rs 350 billion to upgrade production facilities. According to authoritative sources, the finance minister will give customs duty concessions for importing machinery as well as extending excise concessions for additional production. These concessions will be for a longer period so that refineries can upgrade their facilities within a stipulated period.

He indicated that the finance minister will announce a package for the petroleum industry on the Budget day.

UNI

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