Home / Knowledge / News / Textiles / Haldia Petrochemicals to benefit from import duty scrap on naphtha
Haldia Petrochemicals to benefit from import duty scrap on naphtha
Jun '11
Haldia Petrochemicals Ltd (HPL) is expected to benefit the most due to the Centre's decision to scrap the existing 5 percent import duty on naphtha.

The Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee has decided to scrap the five percent import duty to boost the imports of naphtha. The Government expects to offset the revenue loss by the excise duty from higher production.

The decision came after the West Bengal Minister for Industries, Mr. Partha Chatterjee wrote to the Centre asking for the removal of the duty. HPL is the largest industrial venture in West Bengal.

Since naphtha is one of the main raw materials for HPL, the company is expected to save Rs 350 crore annually due to the removal of the duty. However, the company is likely to save only about Rs 250 crore this financial year, as the decision has come in the second quarter.

This amount, however, will not be enough to help the company achieve break even this year, especially in view of the company's poor performance in the first quarter of this fiscal. During the first quarter, HPL may accrue loss of around Rs 150-200 crore due to slowdown in China.

In the last two months, HPL has been selling its final products at prices below its cost price. While the price of naphtha has increased by 39 percent since June last year, the net realization of the company from polymer and chemicals has risen by only 18 percent during the same period.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

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


Browse Our Archives


Advanced Search