OilMin expects new investments through infrastructure fund

Sanjeev Sharma

Tribune News Service

New Delhi, March 2

The National Investment and Infrastructure Fund proposed in the Budget is expected to boost investment in petroleum and natural gas sector.

The PPP mode of infrastructure development would also be revitalised. Various proposals have been made in the Budget 2015-16 which would lead to greater stability, clarity and continuity in the economy and the petroleum and natural gas sector, according to the Petroleum Ministry.

As per Budget proposals, subsidies will continue so that there is no adverse impact on the general public. Finance Minister Arun Jaitley said the government is committed to the process of rationalising subsidies and cut leakages, not cut subsidies. Adequate funds have been provided for LPG and kerosene subsidies.

In context of rationalisation and targeting of LPG subsidy, it was highlighted that under DBTL, Rs 6,335 crore has been transferred to over 11.5 crore beneficiaries.

There is a revision in specific rates of excise duty on petrol and diesel only to the extent of subsuming the quantum of education cess levied, keeping the total incidence of excise duty unchanged. Further, the effective rates of additional excise duty levied on petrol and diesel is proposed to be increased from Rs 2 per litre to Rs 6 per litre to fund investment in roads and other infrastructure to the extent of Rs 40,000 crore.

It has been proposed to reduce the rate of corporate income tax from 30% to 25% in the next 4 years. It is expected that this would lead to higher investment and growth in the sector.