Financial Daily from THE HINDU group of publications
Wednesday, Mar 26, 2003
Financial Daily from THE HINDU group of publications Wednesday, Mar 26, 2003 |
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Petroleum Corporate - Performance RPL complains of Rs 250-cr annual loss Our Bureau
NEW DELHI, March 25 RELIANCE Petroleum Ltd (RPL) has written to the Union Government that it is losing around Rs 250 crore annually after entering into a new contract with IOC, HPCL and BPCL last year for the sale of around 12.5 million tonnes of products. Earlier, it was getting compensated for coastal movement of products to IOC's retailing depots. In the new deal, which lasts for another year, there is no recovery of this cost. The company, however, will now be paid Rs 500 crore by IOC for the sales tax benefit enjoyed by its 27-million-tonne refinery in Gujarat. This money will be released once the Exchequer pays the amount from the irrecoverable taxes allocation made in last year's Budget. RPL gets a full waiver of the four per cent Central Sales Tax (CST) levied by the State. However, it books two-thirds of this amount on the products sold to IOC. This constitutes a significant part of the refinery margins earned by the petroleum major.
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