New Delhi: The Planning Commission is opposed to the proposed government plans to withdraw the 5% customs duties for liquefied natural gas (LNG) that is used as fuel in power generation projects, a top official said.
To partially offset sharp spikes in prices of imported natural gas, the government is considering a proposal to withdraw the 5% customs duties for LNG. This demand has been consistently been made by the power ministry for at least two union budgets of 2007-08 and 2008-09
“We will be against preferential duty to any fuel. We should treat all fuels equally and let the market determine which fuel they want to use. So we should not distort these choices of competitive markets by favouring one fuel against the other,” Kirit Parikh, member, energy, at India’s apex planning body told Mint.
Separately, the Planning Commission members, including its deputy chairman Montek Singh Ahluwalia, also submitted their resignations to prime minister on Monday.