Home / Knowledge / News / Textiles / Haldia demands withdrawal of naphtha import duty
Haldia demands withdrawal of naphtha import duty
18
Jun '11
Haldia Petrochemicals Ltd. (HPL) is facing three major issues that need to be resolved for it to become a zero-debt company, according to the company's Managing Director, Mr. Partha S. Bhattacharyya.

Speaking on the sidelines of a seminar, Mr. Bhattacharyya said, the first problem faced by HPL is the existing 5 percent duty on the import of naphtha. Unlike GAIL, IOC, Reliance and other companies, who have in-house naphtha manufacturing facility, HPL imports naphtha, its key raw material. Hence, HPL is the only company that pays this duty. The withdrawal of this duty would save at least Rs. 3 billion a year for the company.

The second problem faced by HPL, according to Mr. Bhattacharyya, is a regulation passed by the West Bengal government in 2006, under which HPL is classified as an oil marketing company. This law stopped the sales tax benefits enjoyed by the company earlier. Due to this, the company is losing about Rs. 3.6 billion every year.

Mr. Bhattacharyya added, “Lastly, there are issues regarding the restructuring of the management that includes the appointment of a new chairman.” “There is no future for HPL, if these problems are not resolved,” he said.

At present, on account of the first two problems, HPL is losing about Rs. 6.6 billion a year. The total debt of the company is Rs. 32 billion, out of which Rs. 19 billion is in long-term borrowings, and the remaining Rs. 19 billion is in the form of working capital loans. To repay its long-term loans, the company is taking fresh short-term loans.

The severe financial crunch had made the company to cut down its production by nearly 20 percent of the installed capacity. Mr. Bhattacharyya said that the problems faced by HPL have been put before appropriate authority at all levels and he hopes that a solution to the existing problems will be soon worked out.

However, a solution to the first problem was suggested by Mr. Bhattacharyya. He said that either the 5 percent import duty on naphtha can be withdrawn or the import duty on polymer can be increased to 10 percent from the present 5 percent.

He explained that in March 2006, import duty on naphtha was removed and the levy on the polymer (finished good) was reduced to 5 percent. However, when the 5 percent import duty on naphtha was reintroduced in 2008, the duty on polymer was kept intact. It meant that the difference between the duty on naphtha and polymer was essentially zero.

Fibre2fashion News Desk - India


Must ReadView All

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

Courtesy: Heimtextil theme-park

Textiles | On 17th Dec 2017

Heimtextil’s Theme Park to offer multi-sensory impact

Titled “The future is urban”, the Theme Park at Heimtextil during...

Courtesy: Honeywell

Textiles | On 17th Dec 2017

Honeywell acquires 25 pc ownership interest in Flux

Honeywell has acquired 25 per cent ownership interest in Flux...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search