Pradhan calls for inclusion of petroleum products under GST regime

Speed Post News Network

New Delhi : Petroleum & Natural Gas &Steel Shri Dharmendra Pradhan on October 14, 2019, called for inclusion of petroleum products under GST regime.

Speaking at third India Energy Forum organised by CERAWeek in New Delhi, Pradhan appealed to the union finance minister to take this up in the GST council and at least make a beginning by including natural gas and ATF in the GST. He said, “It has been twoyears since the introduction of historic tax reform the GST was implemented by decisive leadership of PM Narendra Modi.Given the complexity of petroleum sector and the revenue dependence of state governments in this sector, petroleum products have been kept outside the ambit of GST regime. There has been continuous demand from the petroleum industry for inclusion of petroleum products under GST regime.”

Pradhan said that no single form of energy can meet the growing energy demand in India given India’s development imperative that aims to ensure energy justice to all. Mixing all commercially viable energy sources is the only feasible way forward in our context. India will chart its own course of energy transition in a responsible manner, he said.

The Minister highlighted several measures taken by the Government to overhaul the hydrocarbon policy framework to revitalise oil and gas ecosystem and establish a conducive business environment. Growing presence of global oil and gas majors like Saudi Aramco, ADNOC, BP, Shell, Total, Rosneft and Exxon Mobil in India is a testimony to the faith and confidence of global investors in India’s growth story.

Pradhan said that we have successfully completed three bid rounds under Open Acreage Licensing Policy and two rounds of bidding under the Discovered Small Fields (DSF) policy. Through these successful biddings, India is expected to garner an estimated investment of 58 billion US dollars in E & P sector by 2023. He said that Special thrust is being given to promote gas based economy.

“I am happy to inform you that as we speak, an estimated investment of 60 billion US dollars is lined up in building gas pipelines, terminals, and City Gas infrastructure that are in different stages of implementation,”, he added. The City Gas Distribution network development in India will cover half of India’s geography and serve 70% of India’s population through availability of low carbon and affordable natural gas.

To promote the energy sustainability, Pradhan said, we are giving thrust on biofuels. The new National Biofuel policy envisages an integrated approach to produce biofuels from various types of agriculture residue and municipal solid waste. Biofuel policy will help farmers to become “urjadata from anndata”. An important initiative has been undertaken to produce compressed biogas from biomass waste.

Inaugurating the Conference, Union Finance Minister Nirmala Sitharaman said that India is becoming an attractive destination for foreign investors. Highlighting the recent announcements to bring down the Corporate Tax rates, she said that atmosphere to invest is friendlier now. She also talked about the amendments in the Companies act and IBC Code, stating that the focus is now on compliance.

Sitharaman assured that Energy sector is on top of agenda, and we are in the cusp of energy transition. She said that the Government will ensure that the commitments made to the investors are honoured. Reiterating the Government’s commitment to COP-21 targets, she said that renewable energy sources are being encouraged.

The theme of third India Energy Forum by CERAWeek Conference is ‘New India’s Energy @75: Balancing Energy Security and Sustainability’. Around 1200 delegates from 15 countries and 300 companies are participating in the 3-day conference.