Budget 2014: LNG exports to Pakistan to be exempt from import duty

NEW DELHI: The government proposes to exempt natural gas supply to Pakistan from import duty, boosting state-run GAIL India’s plans to invest Rs 500 crore to set up a 100-km pipeline from Jalandhar in Punjab to the Wagah border.

“Exemption from basic customs duty is being granted on re-gasified LNG for supply to Pakistan,” according to a budget document.

However, the importer will have to produce a certificate from the assistant commissioner or deputy commissioner of customs that the imported liquefied natural gas (LNG) has been exported to Pakistan, the document said.

LNG imports currently attract a duty of 5%.

An official of GAIL India said that export of gas to Pakistan made business sense since that country is short of the fuel. The company has held several rounds of discussions with Indian and Pakistani government officials in this regard.