Regulations
British Petroleum's application for retailing jet fuel rejected
The government has rejected British oil major BP's application for selling aviation turbine fuel (ATF) to airlines because the company's investment does not qualify it for a retailing licence, Petroleum Minister Dharmendra Pradhan said on Wednesday.
 
"To get marketing rights for transportation fuels, namely, Motor Spirit (MS), High Speed Diesel (HSD) and Aviation Turbine Fuel (ATF), applicants must meet the requirements that inter alia include investment or proposed investment of Rs.2,000 crore in exploration or production, refining, pipelines or terminals," Pradhan told the Rajya Sabha in a written reply.
 
"With reference to this application dated June 11, 2014, the directorate general of hydrocarbons has reported that BP's share of expenditure was $508 million between 2011-12 and 2013-14 of which the capital expenditure component and operational expenditure component is $171 million and $337 million, respectively."
 
"This did not meet the joint requirements of Clause 3(I) and 3(IV) of the Marketing Resolution dated March 8, 2002 and thus the application was rejected," he added.
 
BP Exploration (Alpha) Ltd., a wholly-owned subsidiary of BP, had submitted an application for authorisation to market ATF, or jet fuel, claiming to have invested $477 million in India.
 
Pradhan said that of the $477 million invested in India, $259 million was said to be capital investment and another $2.3 billion was proposed to be further invested.
 
BP's $7.2 billion spent in buying 30 percent stake in 21 exploration blocks of Reliance Industries in the eastern offshore is not being considered as capital investment.
 
To qualify for a fuel retailing licence as per the 2002 fuel retailing guidelines, a company should have made capital investment of Rs.2,000 crore, or $500 million.
 
The petroleum ministry had written to BP in March that it could apply afresh, detailing future investments to qualify for an ATF licence.

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Residential market sees marginal sales, inventory remains high in March quarter
According to Liases Foras, during the March quarter, new launches in affordable segment has kept residential market prices in check. However, the inventory level remains unchanged at 39 months 
 
Residential market in six major cities witnessed marginal growth in sales as well as in inventory. While the average prices in these six cities remained stable in March 2015 quarter compared with previous quarter, Mumbai Metropolitan Region (MMR) saw price decline mainly due to new launches in affordable segment, says non-brokerage real estate research firm Liases Foras.
 
 
According to the latest quarterly report by Liases Foras, overall sales across Bengaluru, Chennai, Hyderabad, Pune, MMR and National Capital Region (NCR) inched by 2%. Sales in Bangalore and MMR surge by 31% and 25% respectively, while NCR and Hyderabad witnessed decline in sales by 27% and 16%, respectively from previous quarter.  
 
During the March 2015 quarter, new supply increased by 21% from previous quarter with 36% of the new supply coming in the cost range of Rs50 lakh to Rs1 crore, followed by the cost range of Rs25 lakh to Rs50 lakh at 29%, Liases Foras said.
 
 
According to the report, 2BHK constitute 36% of new supply followed by 3BHK with 35%. MRR’s average price of new supply is lower by 31% compare to existing supply. Chennai, Bangalore, Pune and NCR show decrease in new launch prices  compare to existing supply prices by 16%, 10%, 6% and 4% respectively, while Hyderabad shows increase in new launch prices by 4% compare to existing supply. Bangalore and MMR constitute 31% and 28% of new supply, respectively. 
 
Liases Foras said, MMR witnessed historic new launches with 18.16 million sq ft of new launches during this quarter. This was the second highest new lunches in a quarter in MMR. The highest new launches so far were during Q1 FY 10-11. 
 
Talking about inventory level, the report says the level in these six major cities increased by 2.48% to 6.88 lakh units admeasuring 919 million sq fts. Chennai, NCR and Pune show quantum of sales is higher than new supply while Bangalore and MMR shows sales is lower than new supply during last quarter. 
 
At India level, month inventory remained un-changed at 39 months from last quarter. NCR showed the worst months inventory at 71 months, while Pune market represents the least months inventory 18 month. MMR market stands at 46 months of Inventory. In ideal condition, a market should maintain 8-12 months of inventory, the report says.
 
 
The average price of six cities remained stable from previous quarter. MMR witnessed the maximum fall of 2.18% in weighted average prices compare to other cities, this is primarily due to new lunches in affordable segment. Pune shows slight increase in prices by 1.38% from previous quarter, Liases Foras added.

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Petroleum products, alcohol excluded from GST regime
By subsuming most indirect taxes levied by the central and state governments like excise, service tax, VAT and sales tax, the pan-India goods and services tax (GST) regime has proposed to facilitate a common market in the country.
 
As a measure of support for the states, petroleum products, alcohol for human consumption and tobacco have been kept out of the purview of GST.
 
Taxes on alcohol make up a major chunks of state revenues -- for instance, in Kerala it contributes 22 percent of revenue, while in Tamil Nadu it yields about Rs.21,000 crore per year.
 
Transport fuels like petrol and diesel are taxed at 20 per cent, while states earn 35 percent of their sales tax revenues from them.
 
In passing the GST Bill 2014 on Wednesday, the Lok Sabha also approved an amendment to help further states in the transition phase, by levying an additional tax of 1 percent on inter-state trade on goods.

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COMMENTS

Mukund Rajamannar

2 years ago

What are we going to get for the additional 1% tax that is being paid? Politicians dole out more freebies before elections.

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