Finally, the 29 Indian States, it seems, has come to a mutual agreement on bringing petroleum-based products under GST radar. The same was confirmed by the Petroleum Minister, Mr Dharmendra Pradhan. He also added that, since the NDA alliance took over reigns from the previous regime in Delhi, cooking gas connections in Karnataka has gone up from 58% to 89% from 2014.
Also about 50 lakh new LPG connections were added in Karnataka after 2014. Previously, the figure for the total LPG connections in one of the southern states stood at 81 lakh LPG connections.
Assuring the media of a sooner than a later decision on the burning topic, the Central Minister asserted that an early rollout of centre order on bringing the petroleum products under the ambit of GST. A unanimous decision is definitely on the cards of the GST Council which would be looking to remove any apprehensions the states have regarding the possible economic returns from the decision.
The Mangalore Refinery and Petrochemicals Ltd. (MRPL) will start churning out BS-VI diesel by March 2019 and the BS-VI petrol by December 2019. The Petroleum Minister further added that entire India would have BS VI fuel by April 2020.
The mega expansion plan that will witness the merger of MRPL and ONGC Mangalore Petrochemicals Ltd (OMPL) is in its final stage. The merger promises an investment opportunity of around ₹70,000 crore. The processing capacity of the MRPL also sees a steep increase from the present 15 million metric tonnes per annum (MMTPA) to 25 MMTPA. The primary focus of the refinery currently remains in the production of petrol, diesel and liquefied natural gas (LPG) and aviation turbine fuel (ATF).
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However, the expansion will surely mean a paradigm shift towards petrochemical-based products. These ancillary units will usher new employment opportunities and bring in additional revenue to the State. No stone has been left unturned to ensure fast-track land acquisition, technology selection, and financial assessment. The calendar year will see MRPL start its expansion mission. The refinery which has the capacity to process all kinds of crude will receive crude from North America, Latin America, Iran, Iraq and different parts of West Asia.
