GUWAHATI, Dec 9 � Reduction of customs duty on crude oil and enhancement in VAT rate from four to five per cent on crude oil by the State government has adversely affected the profitability of the four refineries in Assam. This was stated by A Saran, Executive Director of Bongaigaon Refinery, IOC Limited, today.
Saran informed media persons that some of the challenges of the refineries here were increasing crude oil production and dealing with the situation arising out of reduction of customs duty.
It needs to be mentioned here that although the installed capacity of the four refineries is 7 million metric tonne, they could process only 4.9 million metric tonne last year. �The refineries here are producing at sub optimal level because there have been no significant discovery of oil fields since the Sixties,� he said adding that Bongaigaon Refinery was now concentrating on indigenously developed technology to improve its performance.
It may be stated here that a two-day seminar on �Hydrocarbon industry growth: prospects and challenges in the North-east�, got under way at NEDFi House here yesterday. Inaugurating the seminar, S Rath, Director (Operations) OIL, emphasized adoption of advanced technology in exploration of oil and gas in the mature oil fields of the NE.