Duty-free oil imports for EOUs, SEZ trade units

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New Delhi, Oct 27: The Centre on Thursday said special economic zones (SEZs) trading units can now import various kinds of oil like motor spirit, superior kerosene oil, high-speed diesel, light diesel and fuel oil for supply to export-oriented units (EOUs) and SEZ manufacturing units.

The directorate general of foreign trade has amended the handbook of procedures thereby allowing import of fuels like motor spirit, superior kerosene oil, high-speed diesel, light diesel and fuel oil for supply to EOUs and SEZ manufacturing units, an official statement said quoting export promotion council for EOUs and SEZ units directorate general LB Singhal.

It also stated that the drawback rates for supply of high speed diesel to EOUs and SEZ units has been fixed at Rs 1,025 per metric tonne, while that of the furnace oil has been revised to Rs 1,300 pmt from Rs 1,050 pmt.This will facilitate supply of duty free fuel to EOUs and SEZ manufacturing units.

Entrepreneurs will have to first set up an SEZ trading unit in any of the SEZs for import and supply of fuel to manufacturing units, the statement added.

The import of these fuels in the country, in general, is permitted only through state trading enterprises namely Indian Oil Corporation and companies who have rights for marketing of transportation fuels like HPCL, BPCL and IBP, Mr Singhal said.