India committed to bring natural gas under GST, says PM Modi

Source: Reuters

India is committed to bringing natural gas under the Goods and Services Tax (GST) regime, said Prime Minister Narendra Modi on February 17, urging the global energy majors to invest in India.

He said the government was set to spend over Rs 7.5 lakh crore in the country’s oil and gas infrastructure in the next five years.

When GST was implemented in July 2017, only five petro-products - petrol, diesel, crude oil, natural gas, and aviation turbine fuel (ATF) - were kept out of its purview. The industry has been consistently demanding the inclusion of natural gas under the GST regime.

“We are committed to bringing natural gas under the GST regime. I want to tell the world to come and invest in India,” Modi said launching key oil and gas projects in Tamil Nadu to the nation.

Touching upon the ‘One Nation One Gas Grid’ vision, the Prime Minister said: “We have planned to spend Rs 7.5 lakh crore in creating oil and gas infrastructure over five years. A strong emphasis has been laid on the expansion of city gas distribution networks by covering 407 districts.”

Prime Minister dedicated to the nation the Ramanathapuram – Thoothukudi natural gas pipeline and Gasoline Desulphurisation Unit at Chennai Petroleum Corporation (CPCL).

He also laid the foundation stone of Cauvery Basin Refinery at Nagapattinam.

The Prime Minister said that to achieve green energy targets, India was now increasing the focus on ethanol to help farmers and consumers.

He said India would depend on renewable sources for 40 percent of its energy requirements by 2030. “There is a focus on furthering usage of solar power to become a leader in the sector. Public transport is being encouraged and alternative sources like LED Bulbs are being embraced to enable huge savings for middle-class households," he said.

The Prime Minister asserted that India was working to meet the growing energy demand.

He pointed out that Indian Oil’s 143-Km long natural gas pipeline from Ramanathapuram to Tuticorin would monetise the gas from ONGC gas fields. “This is a part of a larger natural gas pipeline project being developed at a cost of Rs 4,500 crore. It will benefit Ennore, Thiruvallur, Bengaluru, Puducherry, Nagapattinam, Madurai and Tuticorin,” he said.