Budget 2013: Chemical industry hopes for lower import duties on fuels

NEW DELHI: The chemical industry being a large energy consumer hopes import duties on all types of fuels such as LNG, coal and naphtha is reduced in the Union Budget 2013.

Reduction in customs duty on basic building blocks such as ethylene, styrene, propylene, propane and butane has long been on the wishlist of the chemicals industry. The industry claims that a high duty on inputs makes local production unviable.

Urea manufacturers are also looking for the government to take steps to reduce subsidies, which will help their cash flows and also correct the skewed consumption pattern for urea.

Allocation of natural gas and its pricing are also key issues for the industry to decide on its capital expenditure plans.