Industries demand LNG tax exemption

KOCHI: On Saturday, beneficiaries and potential users of Petronet LNG Terminal at Puthuvype demanded a tax waiver at the 'Mission LNG Workshop' organized by the Kerala Chamber of Commerce and Industry (Kand stakeholders of the project in Kochi. The demand was part of a prioritized list of eight demands put forward before the state and central governments.
"The Centre should exempt the 5.5% customs duty imposed on LNG and the state government should waive the 14.5% value added tax on LNG with retrospective effect from November 27, 2013. Petronet should bring down LNG prices to the lowest-possible level by revisiting pricing parameters," said former MP K Chandran Pillai, the chairman of the workshop.
Pillai said Kerala State Electricity Board (KSEB) should speed up its power generation projects at Puthuvype, Cheemeni and Brahmapuram, while another company BSES which operates within the vicinity of the Puthuvype project, should shift from Naphtha to LNG and NTPC's Kayamkulam plan should switch over to LNG. Members, who attended the workshop, demanded that KSRTC should procure 1,000 buses that can run on compressed natural gas (CNG) and the cost of which could be availed as international soft loans. They wanted the city gas project to be completed in a time-bound manner.
Managing director of Centre for Green Technology M P Sukumaran Nair highlighted the economic loss due to the late commissioning of the Puthuvype project. "A rough estimate says the state has lost around Rs 75,000 - Rs 80,000 crore over a period of ten years due to delay in implementing the project," he said.
The workshop also formed a forum to monitor the follow-up activities with KCCI director board member Biju C Cherian as the leader.
The next meeting of LNG Mission will be held after three months. Union minister of state for food and civil supplies K V Thomas, member of legislative assembly S Sarma, MP P Rajeeve, CITU state vice-president K N Ravindranath and KCCI chairman EP George attended the workshop.