Finance Minister P Chidambaram today announced measures to promote investment in the petroleum, chemicals and petrochemicals (PC&P) sector. The announcements come in the wake of Shell Global Solutions, consultants to Indian Oil Corporation (IOC), having recently submitted its report to the petroleum ministry on making India a destination for exporting petro-products. The report recommends setting up of 2-3 mega integrated refining cum petrochemical hubs in the country as against the stand-alone petroleum refining units. In line with this the Budget announced the setting up of a task force to facilitate development of large PC&P investment regions, with world-class developers and investors to be associated with this Task Force.
In addition to this, Mr Chidambaram announced halving the customs duty on naphtha and petroleum coke while unifying the same on natural gas including propane and butane at 5%. While natural gas import currently attracted 5% import duty, LPG (made up of propane and butane) had nil duty. The Budget proposals for 2006-07 have also exempted crude, kerosene for PDS, domestic LPG, petrol, diesel, coal, coke and petroleum gases and fuel from the 4% special additional duty of customs.
01-Mar-06 
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