Naphtha imported by Haldia Petrochemicals Ltd - exemption withdrawn
IT was reported that Haldia Petrochemicals Ltd.(HPL) was mired in financial and administrative mismanagement leading to a deep working capital crisis. So much so, that it was to be referred to BIFR after a closure for about six months for want of working capital.
However, as a New Year gift, the Union Finance Ministry gave the company a much needed financial accommodation by agreeing to grant a four-year extension to meet its export obligations that would take care of its financial liability to the tune of approximately Rs 2,300 crore. Nonetheless, an additional export target of 20% was also imposed by the DGFT. Incidentally, the West Bengal government has a stake of 37.5% in the company.
Be that as it may, Naphtha imported by M/s Haldia Petrochemicals Limited(HPL) for the manufacture of the following polymers viz. Low density polyethylene (LDPE), Linear low density polyethylene (LLDPE), High density polyethylene (HDPE), Linear medium density polyethylene (LMDPE), Linear high density polyethylene (LHDPE) (all under 39.01); All goods other than poly iso butylene (3902); All goods (3903) & Polymers of vinyl chloride (3904) was exempted if the importer followed the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. This exemption was available in terms of Sr. no. 129 of Notification 12/2012-Cus. dated 17 March 2012, as amended.
This exemption is now withdrawn.
Notification dated February 2, 2016.