Govt committed to bring natural gas under GST regime, says PM Modi

The government is working towards raising the share of natural gas in the energy basket to 15 per cent from the current 6.3 per cent and is committed to bringing it under the Goods and Services Tax (GST) regime to eliminate cascading effect of multiple taxes, Prime Minister Narendra Modi said on Wednesday.

“We are trying to eliminate the cascading effect of different taxes on natural gas across different states,” he said adding this would help bring down the cost of gas.

“We are eager to increase the share of natural gas in energy basket from 6.3 per cent currently to 15 per cent... We are committed to bringing natural gas under the GST regime,” he said.

When the GST in 2017 subsumed over a dozen central and states taxes, five products – crude oil, natural gas, petrol, diesel and jet fuel (ATF) – were kept out of it. This has meant that taxes paid on inputs cannot be offset by taxes on the final product.

  

 

“Since 2014, we have brought in various reforms across the oil and gas sector, covering exploration and production, natural gas marketing and distribution. We are working on attracting domestic and international investment through investor-friendly measures,” Modi said. “I want to tell the world come invest in India's energy.” The Prime Minister dedicated to the nation the Ramanathapuram-Thoothukudi natural gas pipeline and Rs 500-crore gasoline desulphurisation unit at Chennai Petroleum Corporation, Manali. He also laid the foundation stone for the Rs 31,500 crore Cauvery Basin Refinery at Nagapattinam.

Modi said the Centre is planning to spend around Rs 7.5 trillion to create oil and gas infrastructure over the next five years, Prime Minister Narendra Modi said, adding that the government was working to reduce import dependence. He vowed to increase to the share of renewable sources in the energy basket to 40 per cent by 2030.

“It is our collective duty to work towards clean and green sources of energy and reduce energy dependence,” Modi said, adding that his government is sensitive to the concerns of the middle class and, thus, India is increasing focus on clean and green energy sources and ethanol.

“We are planning to spend around Rs 7.5 trillion in creating oil and gas infrastructure over five years,” said the Prime Minister. Today, Indian oil and gas companies are present in 27 countries with investment worth about Rs 2.70 trillion. About 65.2 million tonnes of petroleum products have been exported, and this number is expected to rise further, he said. “Our companies have ventured overseas in acquisition of quality oil and gas assets,” he said.

A strong emphasis has been laid on the expansion of city gas distribution network by covering 470 districts, Modi said, adding that the government is looking to increase the share of gas in the country’s energy basket to 15 per cent from the current 6.3 per cent. He said the share of renewable sources will be increased to 40 per cent by 2030.

Commenting on the projects inaugurated on Wednesday, Modi said they will lead to atmanirbharta (self reliance) in the energy sector. CPCL’s new Rs 31,500-crore refinery anticipates about 80 per cent indigenous sourcing of materials and services, and is expected to boost development of transport facilities downstream, and petrochemical industries, ancillary and small-scale industries in the region.

The Ramanathapuram-Tho­oth­ukudi section (143 km) of the Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin Natural Gas pipeline (ETBPNMTPL) pipeline has been laid at a cost of about Rs 700 crore. It has generated 170,000 man-days of employment. The pipeline will utilise gas from ONGC fields and deliver indigenous natural gas as feedstock to Southern Petrochemical Industries (SPIC) at Thoothukudi and other industrial/commercial customers.

The pipeline project will bring down the cost of production and fertilizers. It is part of a larger project being developed at a cost of Rs 4,500 crore. “It will benefit several areas in South India,” Modi said.

Source::: Business Standard ,  dated 18/02/2021.