RIL seeks export-oriented unit (EOU) status for Jamnagar refinery

22-Mar-07

Reliance Industries Ltd. does not get any relief on its retail operations vis s vis state-run firms such as IOC, BPCL and HPCL get government subsidies on selling fuel below cost. This has led to seek export-oriented unit (EOU) status from the government for its existing 33 million tpa refinery in Jamnagar. An EOU status means RIL will not have to pay duty on crude oil imports, thereby reducing losses on selling petrol, diesel and other petroleum products at a lower price, while keeping refining margins high. Such a status would also enable RIL, which is looking for potential acquisition targets abroad including petrochem major Nova Chemicals in North America, to supply cheaper feedstock like naphtha to overseas units, the sources said.