RIL offers to sell diesel to OMCs, wants tax amendment: Pandey

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New Delhi, Sept 29 (UNI) Reliance Industries Ltd is willing to sell diesel from its Jamnagar refinery to state-run oil marketing companies provided the government amends tax rules, Oil Secretary R S Pandey said here today after a meeting with the company Chairman Mukesh Ambani.

''...the company has offered to sell diesel from the Gujarat's Jamnagar refinery to OMCs...it wants us to remove double taxation,'' Mr Pandey told reporters here.

The state-run OMCs have to import diesel on the account of surging demand for petroleum products in the country, while Reliance exports the same fuel as domestic sales will attract heavy duties due to the tax concessions given to the RIL's refinery against a commitment to sell overseas.

Reliance runs a 6,60,000 barrels per day (bpd) export-focussed refinery at Jamnagar in Gujarat and is close to commissioning a new 5,80,000 bpd plant nearby.

The two units, together, will constitute the world's biggest refining complex.

''The new refinery will commence operations before the year-end,'' Mr Pandey said Mr Ambani had apprised him.

Gas production from Reliance's eastern offshore Krishna Godavari basin D6 block is likely to begin by December-end, with peak output expected to be 80 million standard cubic meters per day, which is nealry double of domestic gas output, he added.

However, no discussion happened between the Secretary and the business tycoon, regarding the legal dispute between RIL and Anil Ambani's Reliance Natural Resources, where the Government had sought to implead itself.

UNI SG AK RK1545

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