GUWAHATI, Jan 4 — Union Minister of Petroleum and Natural Gas, Sri Ram Naik today announced that Government of India had decided to reduce the excise duty by 50 per cent of the total output of Digboi Refinery which had a successful run for 100 years. Announcing this while inaugurating the solvent dewaxing plant of the refinery of Indian Oil Corporation on the occasion of its centenary celebration, the Union Minister stated that the special concession to Digboi Refinery was on the pattern of relief available to Numaligarh Refinery Limited. He stated that the relief on excise duty would help the 100-year-old refinery to continue to produce vital petroleum products at competitive costs and maintain its excellent tradition of serving the region. It may be mentioned that Digboi Refinery authority was demanding for cent percent excise duty relief on its products for ten years in the line of the concession being offered to Numaligarh Refinery by Government of India.
The Minister today also announced that government had decided to reduce the security deposit on LPG cylinders for domestic use to Rs 700 per cylinder from the present rate of Rs 900. Sri Naik said that it was possible because of the savings on account of introduction of cylinder procurement by tender system. He informed that benefit of reduction in procurement cost was being passed on to the LPG consumers. The procurement cost was brought down to Rs 640 per cylinder as against the rate of Rs 890 per cylinder as quoted by cartel of cylinder manufacturers. According to Sri Naik this reduction would result in total savings of about Rs 300 crore on procurement of LPG cylinders. The minister also inaugurated the Centenary Museum of Digboi Refinery standing next to the historic well No. 1 of the country. The museum is first of its kind in the country which provides the visitors with a enlightening glimpse of the history of oil industry in the country and its evolution to this modern age.
PTI adds : Naik said the expert committee on revision of crude oil royalty had submitted its report last month. Government would announce increase, if any, in royalty rates by February 28. Government has in three trenches raised rate of royalty on crude oil from Rs 578 per tonne in 1999 to Rs 850 a tonne at present, he said. Naik also announced that Centre would share 50 per cent of is share of profits from the oil and gas exploration blocks awarded under New Exploration Licensing Policy (NELP) with respective State governments. Government has so far awarded 48 blocks under two rounds of NELP bidding. “We are preparing a Cabinet note to this effect and a decision on this is likely soon,” he said.
On the sales tax dispute between Assam government and Indian Oil Corporation’s Digboi Refinery, Naik said the state-owned company would settle all liabilities within a month of Supreme Court giving its verdict. Assam government has imposed a sales tax of Rs 499 crore on the Digboi Refinery. The case is in the Supreme Court after IOC disputed the amount. Naik also asked the Assam Chief Minister Tarun Gogoi to clear Rs 200 crore dues owned by the Assam State Electricity Board to Gas Authority of India Ltd and Oil India.