India to include refineries in HML, easing PIF entry into mega projects: Report

The government is preparing to include refineries in the Harmonised Master List (HML) of Infrastructure, a move designed to grant Saudi Arabia's Public Investment Fund (PIF) and its subsidiaries access to tax breaks on dividends, interest, and long-term capital gains from their planned investments in Indian refinery projects, a Financial Express report said on Monday.

The Financial Express noted that PIF, acting on behalf of Saudi Aramco, is expected to acquire 20% stakes in two mega refineries proposed by ONGC and BPCL on India's west and east coasts. Aramco's initial outlay in these ventures could total about Rs 24,000 crore ($2.8 billion), including a proportionate debt component, with the figure potentially rising to $5 billion at a later stage.

Citing sources, The Financial Express highlighted that the recently enacted Income-Tax Bill, 2025-passed by Parliament and signed into law last month-specifically names PIF and its subsidiaries as eligible for tax concessions on income derived from infrastructure assets. However, without refineries being formally recognised in the HML, these benefits cannot yet be extended, prompting officials to expedite their inclusion. The paper also pointed out that Riyadh recently supported New Delhi by signing a swift agreement to supply fertilisers after delays from China threatened to disrupt India's imports.

As The Financial Express reported, while refineries had been evaluated for inclusion in the original 2012 HML, they were excluded despite being part of the broader energy category. The list, overseen by the Department of Economic Affairs, serves as a uniform reference for defining infrastructure sectors eligible for tax incentives, infrastructure lending, and easier terms on external commercial borrowings.