Halving of import tax on LNG to save Rs 900 crore for consuming industries
NEW DELHI: The government’s move to halve import tax on liquefied natural gas (LNG) in a bid to promote use of the cleaner fuel, will result in Rs 900 crore savings to gas-consuming industries.
A host of industries from petrochemical plants to fertiliser units will benefit from the Budget announcement of cutting import duty on LNG to 2.5% from 5% currently, oil ministry sources said.
This, they said, augurs wells to achieving the objective of increasing the share of natural gas in India's energy mix to 15% by 2020 from 6.5% at present.
Government is focused on increasing the usage of natural gas in overall primary energy mix for promoting a gas-based economy in the country. In view of limited availability of domestic gas, there is continuous increase in import of super-chilled natural gas (LNG) in the country.
Import of LNG is allowed under Open General Licence (OGL) scheme and prices are based on international market demand-supply scenario, they said, adding import duty of $0.35 per million British thermal unit on a spot LNG price of $7 per mmBtu will now halve.
A host of industries from petrochemical plants to fertiliser units will benefit from the Budget announcement of cutting import duty on LNG to 2.5% from 5% currently, oil ministry sources said.
This, they said, augurs wells to achieving the objective of increasing the share of natural gas in India's energy mix to 15% by 2020 from 6.5% at present.
Government is focused on increasing the usage of natural gas in overall primary energy mix for promoting a gas-based economy in the country. In view of limited availability of domestic gas, there is continuous increase in import of super-chilled natural gas (LNG) in the country.
Import of LNG is allowed under Open General Licence (OGL) scheme and prices are based on international market demand-supply scenario, they said, adding import duty of $0.35 per million British thermal unit on a spot LNG price of $7 per mmBtu will now halve.
