Baalu Rules Out Petro-Product Price Hike
Minister of state for petroleum and natural gas T R Baalu yesterday said there would be no hike in the prices of petroleum products in the forthcoming budget. Speaking to the press here, the minister, however, did not rule out a hike in petroleum product prices after the budget.
He said the petroleum ministry had sought certain tax reliefs from the finance ministry and it expected a favourable response.
The decision to increase the prices of petroleum, oil and lubricants (POL) depends on various factors including price stabilisation in the international market and the status of the rupee in the international fiscal market. No one can rule out a price hike in future. Neither the Prime Minister nor the concerned ministry have talked about price rise, Baalu said.
The minister announced a Rs 3,100 crore-plus package for petroleum sector investment in Bihar during the ninth plan.
The minister also inaugurated on Saturday a catalytic reformer unit (CRU) at Barauni. The unit was built to produce eco-friendly petrol with a 0.15 gm per litre lead content. In view of the growing demand for petroleum products in the region, a massive expansion plan was proposed for the Barauni refinery. The CRU, set up at a cost of Rs 248.11 crore had, already been synchronised.
The minister said low cost expansion of the Barauni unit had been taken up on priority basis. It is proposed to increase the capacity of the unit from 3.5 million tonnes per annum (mtpa) to 6 mtpa during the 9th plan at a cost of Rs 1,0291 crore. This includes augmentation of the proposed Haldia-Barauni crude pipeline.
Referring to pipeline projects, the minister said the 500 km long Haldia-Barauni crude pipeline (240 kms) in Bihar covering Dumka, Deoghar, Jamui, Lakhisarai, Patna and Begusarai districts was under construction at a cost of Rs 953 crore and was expected to be completed during the ninth five year plan.
In view of the proposed refinery at Paradeep, a 390 Km long Paradeep-Ranchi product line would also be constructed during the 9th plan at a cost of Rs 547 crore.
The minister also announced that seven LPG bottling plants with an investment of Rs 260 crore would be set up during the ninth plan in Bihar. While IOC would set up the units at five places