Page 134 - CW E-Magazine (13-5-2025)

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TRADE POLICY

Government set to extend input tax remission scheme

for exporters beyond September 30

The government is set to extend as opposed to Rs.
the popular Remission of Duties and 16,575-crore in the
Taxes on Exported Products (RoDTEP) previous fi scal. The
scheme beyond September 30, 2025 RoDTEP scheme, an-
when it is scheduled to lapse, as a per nounced in January
report in the Hindu Businessline news- 2021, refunds embed-
paper. ded duties and taxes,
such as VAT on fuel
“The scheme will defi nitely be used in transportation,
extended beyond September 30, 2025 mandi tax and duty on
to the main benefi ciaries. It is usually electricity used during
extended for a limited period just to manufacturing of the
monitor the spend and ensure that the There is no guarantee, however, exported items.
budgetary allocation for the scheme is that the benefi ts will also be extended
not exceeded. We are comfortable as far to units in SEZs and EOUs and While most manufacturing sectors
as budgetary allocation for the ongoing Advance Authorisation (AA) holders, are included in the scheme, a few such as
fi scal is concerned,” an unnamed offi - the report added. For FY26, the Bud- steel, pharmaceuticals and chemicals are
cial was quoted as saying in the report. get for RoDTEP is Rs. 18,000-crore excluded.

LUBRICANTS & GREASES

CPCL plans investment in base oil upgrade project

Chennai Petroleum Corporation Ltd. The refi nery expansion –
(CPCL) is preparing to invest Rs. 700- a joint venture between CPCL
800 crore annually over the next 2 years – and Indian Oil Corporation
nearly doubling its usual spend - to sup- (IOC) – has had its capital cost
port a high-return project focused on revised to Rs. 36,354-crore,
upgrading lube oil base stocks (LOBS). with IOC holding a 75-percent
stake and CPCL 25-percent.
The proposed investment includes The planned 9-million metric
Rs. 250-300-crore for routine main- tonnes per annum (mmtpa)
tenance and smaller projects, while facility features a petrochemi-
the remaining Rs. 400-500-crore is ear- cal intensity index of 6 per-
marked for the LOBS 2 and 3 upgrade cent and will primarily pro-
programme. Refi nery expansion duce polypropylene. Notably, the new
Providing an update on the upcoming unit will not produce naphtha, marking
The Group II/III LOBS project, now mega refi nery project at Nagapattinam in a shift in the traditional product slate.
in an advanced stage of planning, aims Tamil Nadu, the management said CPCL
to convert naphtha and high-speed die- has completed the acquisition of over The debt-equity ratio for the joint
sel (HSD) into higher-value lube base 1,200 acres of land. Pre-project activi- venture is currently being worked out
oils. “It’s a very profi table project, and ties are underway. However, the project at 1:2, though CPCL highlighted that
we are ready to execute it quickly once is still awaiting crucial clearance from capital structure decisions – includ-
the necessary approvals are in place,” the Cabinet Committee on Approvals ing any potential rights issue – remain
the company’s management said during (CCA), with CPCL expecting updates in under evaluation and will be fi nalised
the Q4 FY25 earnings call. the coming months. closer to project execution.

134 Chemical Weekly May 13, 2025

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