There will be anomaly with petroleum out of GST: Hasmukh Adhia
Petroleum being out of the goods and services tax (GST) initially will create some anomaly as tax credit on some of the inputs to oil industry may not be given, said Revenue Secretary Hasmukh Adhia in an e-mailed interview. He tells Dilasha Seth that the Central Board of Excise and Customs (CBEC) is working out a plan to recast the organisational structure once GST is implemented. Excerpts: You have said both the Centre and states will have administrative power to assess and scrutinise businesses. However, states want the sole power over entities with up to Rs 150 million of annual turnover. Is there a solution to this tussle? The issue of cross empowerment for the purpose of removing dual control will have to come up for discussion in the meeting of the GST Council. We will continue to make efforts with the states to arrive at a consensus on this. There are fears that inflation will rise, at least in the short run, if the rates are not kept within 18 per cent. Is this fear justified? Whether or not GST will cause inflationary pressure is itself a moot question. If the exemption list and rate structure are properly designed, one can avoid having inflationary pressure, but we need to watch inflation number after GST is implemented. What are the key inputs the ministry has got over the draft model GST Bill? We have received 40,000 pages of representations from various organisations mainly from financial services, information technology and transportation sectors. We are examining this and we will try to make changes in the draft law if required. There are fears that the tax regime for the oil & gas industry will make compliance difficult. Products such as kerosene, naptha and liquid petroleum gas would be under GST’s ambit, while five items in the basket – crude oil, natural gas, aviation fuel, diesel and petrol – are excluded for the initial years. Do you plan to address this anomaly? Yes, there would be some anomaly created because of the fact that the petroleum sector is out of the GST’s purview. Some of the inputs to the petroleum sector industry might carry GST burden, which can stay as accumulated duty which is not VAT able. We will look at this issue in due course. Can the Congress’ demand of capping GST rate at 18 per cent in the GST Act be met? The rate and rate structure can only be based on facts and figures on the existing revenue of State and Centre, which are to be discussed in the GST Council. At the moment, it is not possible to say ‘yes’ or ‘no’ to any such artificial number. The decision on rates will also depend on the list of exempt items, list of demerit commodities, etc. Will there be rationalisation of workforce under CBEC to implement GST? CBEC at present looks after Customs, Excise and Service Tax. In metropolitan cities, Excise and Service Tax Commissionerates are separate, but in other places the work of Excise as well as Service Tax is done by the same Commissionerate. The CBEC is working out a plan in which the organisational structure can be recast once GST is implemented. Bryan Little Authentic Jersey
Government may supply pooled gas to phosphatic and potassic fertiliser manufacturers
Providing a breather to Deepak Fertilisers and Petrochemicals Corp. Ltd, and state-run firms—Rashtriya Chemicals and Fertilisers Ltd (RCF) and Gujarat State Fertilizer and Chemicals Ltd (GSFC)—the government may allow supply of pooled gas to these companies to manufacture phosphatic (P) and potassic (K) fertilisers. This comes in the backdrop of the National Democratic Alliance government focussing its energy on reviving the rural economy making irrigation and urea availability an important part of its game plan. The government last year approved gas supply at uniform price to all fertiliser units for urea production through a pooling mechanism. However, the guidelines related to supply of gas to fertiliser units producing phosphatic and potassic nutrients are yet to be finalised. “Recently, the inter-ministerial committee, headed by the fertilisers secretary, decided that P&K manufacturers may be supplied pooled gas meant for urea production to manufacture P&K fertilisers as well. The matter has been referred to the minister for chemicals and fertilizers, after which it will need the Cabinet’s approval,” said a senior fertiliser ministry official on condition of anonymity. Phosphatic fertilisers contain phosphorus in any organic or inorganic form, and include the commonly used di-ammonium phosphate. Potassic fertilisers are the ones which contain potassium in absorbed form. The commonly used potassic fertilisers include muriate of potash and sulphate of potash. “The government had earlier decided to charge the highest existing re-gassified liquefied natural gas price from P&K manufacturers. However, the inter-ministerial committee has come to a conclusion that it will not be viable for the companies,” said another government official from the ministry who also did not want to be named. InfraCircle had earlier reported that the Union government plans to recover Rs. 15 billion as dues from Deepak Fertilisers, RCF and GSFC for using subsidised fuel to manufacture fertiliser. In 2010, India implemented nutrient-based subsidy policy for phosphatic and potassic fertiliser producers. This resulted in market pricing of these fertilisers as opposed to urea, the most commonly used fertiliser in India, which is controlled and currently sold at a fixed price. Given the market pricing for phosphatic and potassic fertilisers, the government in 2014 decided to divert the subsidised APM gas to urea plants. The so-called APM mechanism does not exist anymore and refers to the price of gas produced by state-owned upstream explorers such as Oil and Natural Gas Corp. Ltd and Oil India Ltd from the blocks awarded to them on a nomination basis. While APM gas supplies to Deepak Fertilisers were stopped as it was manufacturing complex fertilisers, the gas supply continued for RCF and GSFC as any cut in supplies would have affected urea production. These firms have stated to the government that their plants are configured in a manner that any stoppage of gas supplies would affect both urea, and phosphatic and potassic production. Experts though think this is the right step, a mechanism is required to give pooled gas to P&K manufacturers. “The country imports significant amount of P&K fertilisers. So supply of gas to domestic entities will ensure domestic availability,” said Neeru Abrol, former chairman and managing director of National Fertilizers Ltd. Queries emailed to the spokespersons for the ministries of chemicals and fertilizers, and petroleum and natural gas, Deepak Fertilisers, RCF, GSFC and GAIL (India) Ltd on 10 August remained unanswered. The government has made a provision of Rs. 700 billion on account of fertiliser subsidies in the Union budget of 2016-17. Evgeny Kuznetsov Womens Jersey
Government to align ethanol price with global market
After paying a fixed price for ethanol used for doping in petrol, the government said it will move towards ‘market dynamic’ pricing system where rates would move in tandem with international trend. In a bid to boost agrarian economy, the government had in December 2014 fixed a price of Rs 48.50-49.50 per litre for ethanol public sector oil companies were to buy from sugar mills for blending with petrol. This rate is about 20 per cent more than the current cost of producing petrol .. We want to link the price to market dynamics. Government will move towards market dynamic pricing system,” Oil Minister Dharmendra Pradhan said at conference on bio-fuels here. He said at present 10 per cent sugarcane extracted ethanol is being mixed with petrol and sold in eight sugarcane producing states of Uttar Pradesh, Karnataka, Maharashtra, Andhra Pradesh, Telangana, Haryana, DELHI and Bihar. At the remaining places, 5 per cent ethanol is being mixed in petrol. Also, doping of non-edible oil, called bio-diesel, in diesel will begin this fiscal with 110 million litres being contracted, he said. Pradhan said with India’s fuel demand slated to rise exponentially, ethanol and bio-diesel market of Rs 65 billion can jump to Rs 1000 billion in next few years. By 2022, 4.50 billion litre of ethanol, costing about Rs 230 billion, and 6.75 billion litre of bio-diesel, worth Rs 270 billion, would be required considering a nominal fuel growth of 5-6 per cent, he said adding the requirement would be substantially higher if the 2014-15 and 15-16 growth average of 11-12 per cent is taken. Craig Kimbrel Authentic Jersey
India’s Numaligarh Refinery plans $3 billion expansion to treble capacity
India’s Numaligarh Refinery Ltd (NRL) plans a $3 billion expansion of its 60,000 barrels per day (bpd) refinery in the northeastern state Assam, its managing director P Padmanabhan said. He said his firm is awaiting a response from the oil ministry on the plan to treble the refinery capacity to 180,000 bpd. NRL, with some refineries of Indian Oil Corp, meets the fuel demand for the northeastern part of the country. The company plans to shut the refinery for two-three weeks in September for maintenance, catalyst change at a hydrocracker and hooking up a diesel hydrotreater with the existing unit, he said. “We are building up stock to meet demand in the region… there will not be any shortages,” Padmanabhan told Reuters. NRL is majority owned by refiner Bharat Petroleum Corp. He said other refineries in the region are not planning a maintenance shutdown of units and will ensure availability of fuels in the region. “If required, BPCL will supply the fuel,” he added. Carlton Fisk Authentic Jersey
Air Costa may sell 26% stake to Qatar Airways
Air Costa, the Vijayawada based airline, is in talks with Qatar Airways for an equity tie up. Sources in the regional airline told BusinessLine that even as Air Costa suspended its operations for a day early this month, its top management was in Doha in Qatar to negotiate the deal. The airline resumed operations after it restructured its leasing terms with its lessor, GECAS (GE Capital Aviation Services). It had earlier leased its two 78-seater E170s from Embraer itself. Air Costa is promoted by the LEPL Group, which has interests ranging from real estate to power plants. A spokesperson for the company refused to comment on the developments. Sources said that Air Costa is willing to sell 26 per cent equity to the foreign airline but is expected to shed a higher stake if it is able to get more funds. Last year, it was in talks with a couple of foreign investors to sell 26 per cent stake to raise Rs. 350 crore. It has placed orders for 50 new E190s worth $ 2.94 billion which are expected to start arriving from 2018. Air Costa now has three 110 seater E190 Embraers and flies to nine destinations. It operates 35 flights daily and has already flown over 1 million passengers. By 2018, it plans to have a total fleet size of 12 aircraft and fly to 18 stations. Qatar Airways, a state-owned airline based out of Doha, has been in talks with several foreign airlines for similar tie ups to put together a network of international alliances. It has a fleet size of over 180 aircraft and flies to more than 150 destinations globally. According to its web site, Qatar Airways operates to 13 cities in India with over 100 weekly flights and has been in talks with a few Indian airlines for an alliance. With Air Costa set to receive its pan India licence, Qatar has been keen on coming on board the airline, sources in the Vijayawada-based airline said. At one point of time, Qatar Airways was learnt to be in talks with Kingfisher Airlines but the talks fizzled out after the Indian carrier folded up. As per the civil aviation policy, foreign airlines can pick up 49 per cent stake in an Indian carrier. If they want a higher stake, they can join hands with foreign funds and portfolio investors to cross the 49 per cent barrier. Trent Williams Authentic Jersey
Major reforms underway in freight sector: Prabhu
Major reforms are underway in the freight sector with reduction of cargo charges announced in the rail budget for the first time, and it will benefit the railways in a big way during the coming days, Railway Minister Suresh Prabhu today said. “In our country due to non-running of time-tabled freight trains, most of the cargo does not come to railways… when will the goods train reach no one knows. “But to change this scenario we have already started a programme and two pairs of time-tabled container trains — ‘Cargo Express’ — have commenced and I am happy to share that they reached their destinations ahead of their scheduled time,” Prabhu said after flagging off a time-tabled container (weekly) train between Nagalapalli and Tuglakabad at Secunderabad railway station here. He said though the railways gets two-thirds of its income from goods transportation, “we did not focus on this and because we ignored it, the railways’ share in cargo has been on the decline and in the coming days it will be a matter of concern how the railways will support itself.” “Hence, for the first time in the history of the rail budget, from this year we have initiated bringing down cargo charges. Reforms in the freight sector are mind-boggling, and will benefit railways in the coming days,” Prabhu said. The railways is the biggest user of energy, he said, pointing out that energy utilisation should be done in a proper way, and to bring down costs (on electricity) several measures also need to be undertaken. “Bringing down costs (reduce expenditure of railways on energy) is essential for survival of the railways…It’s a matter of existential need and we have formulated big policies on energy-saving,” the minister said. In the last two years, the Narendra Modi-led government has made the rail budget with the focus on providing passenger amenities and the budget has everything for the common man, he said. “Big investments to improve passenger amenities such as lifts, elevators, e-ticketing, catering on demand, mechanised laundry and the new Deen Dayal coach have been made,” he said. Prabhu also flagged off the 11307 Gulbarga-Hyderabad daily Intercity Express and the 11083 Mumbai LTT-Kazipet weekly Tadoba Express via video remote link during the event. He said the “two long-pending demands (to start passenger trains) have now been fulfilled.” Joe Theismann Jersey
Dispute between Delhi government, highway authority stalls NH-24 widening
A dispute between the Delhi Government and the National Highways Authority of India (NHAI) over encroachment along NH-24 has stalled widening of the highway. While preparatory work has started on the NH-24, the Delhi Government is yet to hand over land to NHAI. The biggest contentious issue is removal of a slum cluster at Patparganj in East Delhi which is necessary for widening of the highway. The slum called Nehru Camp houses nearly 1000 shanties. Widening of NH-24 is important for smooth traffic flow between Delhi and Ghaziabad. This stretch of NH-24 from Sarai Kahle Khan to UP Gate is accessed by nearly three lakh vehicles every day. Union Transport Minister Nitin Gadkari has recently taken up the matter with Delhi Chief Minister Arvind Kejriwal for swift action for removal of encroachment. POLITICS INVOLVED? However, sources said the Delhi Government has not shown much keenness given the Aam Aadmi Party’s vote bank in the slums. The Nehru Camp falls in the constituency of Deputy Chief Minister Manish Sisodia. Sources said the Delhi Government would get the land vacated only after the NHAI assures adequate compensation to the slum dwellers. A senior Transport Ministry official said they are working out the amount of compensation. “Widening of NH-24 will offer a big respite to lakhs of daily commuters between Delhi and Uttar Pradesh. Union Transport Minister Nitin Gadkari has spoken to Delhi CM Arvind Kejriwal and the latter has agreed to provide land. We are working out the amount of compensation. A decision will be taken soon,” said the official. DISPUTE OVER COMPENSATION However, sources said there was also a dispute over paying compensation. Since the land in question belongs to the Public Works Department (PWD), the NHAI wants the Delhi government to compensate the slum dwellers, sources said. According to Delhi Government officials, the slum is situated over PWD land which has to be handed over to the National Highways Authority of India (NHAI) for converting NH-24 into 14-lane road. The notice to vacate the land was issued by the Sub-Divisional Magistrate in August 24. However, the demolition was stopped by the Delhi Government. Angry slum dwellers alleged that the Delhi government has not offered any alternate location for them. A police team was attacked by the slum dwellers when they were asked remove the encroachment from the roads. The AAP government has taken a decision against demolition of slums in Delhi unless a rehabilitation plan is put in place. Immediately after taking oath as Chief Minister, Arvind Kejriwal had issued a notification prohibiting demolition in Delhi. Carlton Fisk Womens Jersey
NHAI,IIT-Kharagpur ink pact for paneled concrete pavements
National Highways Authority of India (NHAI) and IIT-Kharagpur have entered into an agreement for research on laboratory and field investigations on paneled cement concrete pavements for highways. “NHAI in collaboration with IIT Kharagpur shall promote to develop a technology to construct paneled cement concrete (pre-fabricated in a small panel size) which can replace the design of construction of existing cement concrete road,” NHAI said in a statement. The duration of the research project is 3 years and NHAI has paid an amount of Rs 1.25 crore for the it, excluding cost of construction of trial pavement section on NH, the statement added. The highways in the country are generally paved with bituminous (asphaltic concrete) material produced from refineries. However, NHAI said it has been experienced that these highways are prone to damage and need periodic maintenance frequently due to adverse climatic conditions such as rain and hot weather prevailing in the country. “Therefore, to overcome this problem, the Government of India has recently announced a policy for the construction of concrete pavements for all major highways due to their longevity and maintenance free life,” it said. As per the current practices, the construction of these highways requires a monolithic (in-situ) layer of cement concrete normally 300 mm thick laid continuously over the prepared surface. Therefore, an innovation is required to optimise the design of concrete pavement in its traditional form which can facilitate the faster construction at much cheaper cost, thus, consuming less natural resources and promote the philosophy of Green Highways in the country. Any saving in design and construction with the help of new technology will not only entail huge investment but also save consumption of substantial quantity of natural resources used for production of cement and stone aggregates. “The paneled concrete pavement laid on a lean concrete base can fulfill government’s dream of providing a long lasting maintenance free pavement at a cost at par with those of asphalt pavements,” it said. Such pavements laid at a few places in India have given a good service when used as an overlay over a bituminous layer commonly terms as white topping (WT) but an extensive study is required to formulate the design practices for its use in wider perspective, it added. Jadeveon Clowney Authentic Jersey
Khattar asks officers to accelerate speed of work on highways
Haryana Chief Minister Manohar Lal Khattar today directed PWD officials to coordinate with the National Highways Authority of India to accelerate the work on National Highways in the state. The Chief Minister, who was presiding over a meeting to review the progress of works of National Highways here, exhorted the officials of Public Works (Building and Roads) Department to put in sincere efforts to get the work completed on time. The Chief Minister said the present government is keen to strengthen infrastructure and connectivity in the state. It was informed in the meeting that work on widening National Highways passing through the state is in progress. Michael Dickson Jersey
Round-the-clock power supply a distant dream for Ghaziabad
The Paschimanchal Vidyut Vitran Nigam Limited’s (PVVNL) move to augment power infrastructure in the city under Integrated Power Development Scheme (IPDS) has hit the land hurdle. As a result, plans to construct six 33/11 KV sub stations across the city is hanging fire. “For a long time, we were working on a plan to provide round-the-clock power supply for which we needed to enhance the infrastructure. Unfortunately that is not happening anytime soon,” said PVVNL chief engineer SK Gupta. “There are at least six places where we urgently need to build 33/11 KV sub stations but neither GDA or GMC are in a position to provide land for it,” Gupta added. “Every time we request GDA and GMC we are told that no land is available. This has been happening for the last two months and if this continues, I am afraid it will have an adverse effect on the already declining power situation,” Gupta claimed. Of the six places where the power department needs land, four are in the trans Hindon area whereas the rest are within the city. “In trans Hindon area we need 2,200 to 2,400 sqm of land at Pasonda, near Haj House and at Delhi border while in the city, land is required at Chipiyana and Model Town. In fact we can manage with 1,500 to 1,800 sqm of land but we are not getting even that,” Gupta alleged. The primary reason why the civic agencies are reluctant to part with the land is because the rule says the land has to be given for free and the agencies have reservations over it. Uttar Pradesh Chief Minister Akhilesh Yadav has also set a target to provide 16-hours of power supply in rural areas and 22-24 hours supply in urban areas. This was promised in his party’s manifesto in the 2012 Assembly elections. But as things stand now, 24-hours of uninterrupted power supply at least in Ghaziabad is a distant dream and this is bound to have repercussions for the party in the upcoming Assembly elections. Earl Thomas III Jersey