Duty recast to hit NE refineries
Kolkata   02-Sep-2011

Duty restructuring by the Centre, coupled with increase in entry tax by the Assam government, will cost the four refineries of the North East around.1900 crore annually.

United Workmen Union of IOCs Guwahati refinery has slammed the government for this action. According to the union, reduction of customs duty on crude from 5% to nil, customs duty reduction of petrol, diesel from 7.6% to 2.5%,lowering of excise duties on diesel from.4.60 per litre to.2 per litre and increase of VAT on crude from 4% to 5%,besides imposition of 2% entry tax by Assam government and increase in pumping tariff rates have impacted the already strained profitability of the four refineries.

Biren Kalita, chief of the United Workmen Union, Guwahati Refinery, said refineries of the region get 50% excise duty benefit which is key to their survival.

He added that Digboi Refinery, with a capacity of 0.65 million metric tonnes per annum (mmtpa),will suffer a loss of almost.200 crore, Numaligarh Refinery (NRL),with a refining capacity of 3 mmtpa, will lose around.765 crore per annum.

Kalita said below 6 mmtpa, a refinery is economically unviable.