New Delhi, Apr 23 (UNI) The Standing Committee on Petroleum and Natural Gas today said ethanol should be included in the 'Declared Goods' category and accord infrastructure status to the exploration and production (E&P) sector.
Presenting its twentieth report in the Lok Sabha, the Committee Chairman N Janardhana, a Member of Parliament, has termed the inclusion of ethanol in the Declared Goods category the need of the hour.
He said the status would lead to a uniform sales tax rate across the country, thereby facilitating the hassle free movement of this vital item.
Dr Janardhana said a number of proposals sent by the Ministry of Petroleum and Natural Gas to the Finance Ministry, which included the above said recommendations for the inclusion in the Budget (2008-09) have not been incorporated in this year's Budget.
The Committee, in the 14th report to the Lok Sabha, had recommended that infrastructure status should be accorded to E&P activities in order to attract investments to the sector.
The Committee in its recommendations has also asked that the fiscal subsidy rate on PDS Kerosene and domestic LPG should be hiked substantially.
During April-December 2007, the subsidy on each litre of PDS Kerosene was Rs 16.02 out of which the oil companies bore Rs 15.20 and the contribution from the government Budget was 82 paise.
Similarly, for domestic LPG, the per cylinder subsidy amounted to Rs 201.67 during the said period, out of which the contribution from the Government Budget was Rs 22.58 and the amount borne by the oil firms Rs 179.09.
UNI RT/SBA PBB GC1825