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

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Ebay

Apparel/Garments | On 19th Jun 2018

eBay partners with Noon for e-commerce sales in Middle East

Noon, the $1 billion e-commerce venture backed by Dubai businessman...

Interviews View All

Cindy McNaull

We have broad range of options in durable fabrics

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Carolin Russ

Weko, Weitmann &amp; Konrad GmbH &amp; Co KG, based in south Germany, is...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Kevin Nelson

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

Steve Cole
Xerium Technologies

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Mike Hoffman
Gildan Activewear SRL

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

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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


Leave your Comments

June 2018

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

news category

Related Categories:

Advanced Search