BPCL which has ongoing investments of Rs. 20,225 crore in the Kochi Refinery has demanded several tax sops from the government. BPCL wants the government to extend the Investment Allowance benefit for a further period of three years, that is, upto March 31, 2018. Presently, the benefit is available upto March 31, 2015. The Kochi refinery capacity expansion is anticipated to be completed in 2016-17, while the petrochemicals project is to be completed in 2017-18.
In addition, BPCL wants a profit-based or investment-based incentive to be provided under the Income Tax Act to Oil Marketing Companies (OMCs) for expansion and upgradation of their refineries and marketing infrastructure. Further, BPCL wants appropriate Notification under Section 25 of the Customs Act, 1962, be issued to grant exemption by notifying Zero Customs Duty on imported equipments, machinery and other material required for such projects. BPCL also wants the excise duty rates on branded HSD and petrol to be brought at par with normal diesel and petrol. BPCL has also demanded cenvat credit to be allowed on all the inputs used for the manufacture of exempted goods such as kerosene and LPG.
