| Date: |
06-06-2015 |
| Subject: |
Customs tip to Haldia Petro for tax relief |
Calcutta June 5: Haldia Petrochemicals Ltd (HPL) should "seek more time" from the Director-General of Foreign Trade (DGFT) to fulfil its export obligation and wriggle out of a Rs 2,700-crore tax demand, a senior central government official said.
Chief commissioner of customs Gautam Ray also suggested that the Bengal government should take the initiative to resolve the mess that the state's showcase industrial project finds itself in. HPL is a joint venture of the state government and private promoter The Chatterjee Group (TCG).
"I have spoken to HPL authority and advised them to explain to the DGFT the reasons for not fulfilling the export obligations, which is worth Rs 2,700 crore. They should also ask for more time," Roy said at a seminar held at the Bengal Chamber of Commerce and Industry here today.
The company had imported naphtha, its main raw material, under the advance licence issued by the DGFT without paying duty. HPL had to export the finished product (polymer) to avail itself of the duty-free import.
However, the company failed to meet its export obligation during that period owing to poor financial health and weak market conditions.
It focused on the domestic market where margins were higher than the overseas market.
The company could not afford to let go of the higher margin because of its poor balance sheet.
HPL made a remarkable turnaround after resuming production earlier this year. The company steadily ramped up output and now operates at more than 100 per cent capacity. It has also met all the export obligations in the last few months.
Roy also advised HPL to resolve the issue of priority berthing at Haldia port.
"Although HPL has order to export more there is no priority berthing for them. They now have to wait for at least 12-15 days. As a result, export of consignments is being delayed. They should approach the vice-chairman of the port, who has the power to give priority berthing," he added.
Roy, who visited the plant a few days back, said the company needed to export chemicals such as benzene and butadiene fast, without which the plant would not be able to continue production.
Source : telegraphindia.com
|