Govt rejects BP’s plea for selling ATF

New Delhi, March 30 

The government has rejected British Petroleum’s application for selling Aviation Turbine Fuel (ATF), saying its expenditure in India so far does not qualify it to get a fuel retailing licence, but has allowed it to apply afresh with more details.

The Petroleum Ministry, earlier this month, wrote to Europe’s second-largest oil company, saying its $477-million investment in India to date does not qualify it to begin selling jet fuel to airlines, a senior Oil Ministry official said.

A licence to retail any of the transport fuels — petrol, diesel or aviation turbine fuel (ATF) — is contingent upon a company investing or proposing to invest Rs 2,000 crore in oil and gas exploration and production (E&P), refining, pipelines or terminals within 10 years.

To qualify for a fuel retailing licence, an entity should have made capital investment of Rs 2,000 crore or $500 million, in line with the 2002 fuel retailing guidelines.

British Petroleum’s $7.2 billion spending in buying 30 per cent stake in 21 exploration blocks of Reliance Industries Limited is not being considered as capital investment, he said. — PTI