Page 44 - Plastics News February 2017
P. 44
FEATURES
Impact on the Industry: OIL & GAS
– This move is targeted to double the farmer’s income Proposals:
in the next five years. This shall augur well for the
fertilizer sector. Fertilizer demand would get a fillip – Reduction in the basic customs duty on import of LNG
on account of easier farm credit availability and it (Liquefied Natural Gas) from existing 5% to 2.5%
shall also promote farmers to use more complex and
organic fertilizers. – Creation of an integrated public sector ‘oil major’
which will be able to match the performance of
– This move is targeted towards improving the soil international and domestic private sector oil and gas
fertility and productivity and balance usage of companies
nutrients resulting in increased usage of complex
fertilizers to suit the specific soil needs rather than – Setting up of Strategic Crude Oil Reserves
excess use of low cost urea. Fertilizer companies
will also co-market city compost which increases the Impact on Companies:
efficacy of chemical fertilizer.
– In view of the deficit domestic gas production, the
METALS & MINING decrease in the duty is likely to benefit petrochemical
industry and consequently, it is expected to increase
Proposals: demand for imported LNG.
– Decline in the customs duty of HR coils used for Impact on the Industry:
manufacturing of welded tubes & pipes
– In view of the deficit domestic gas production, the
– Decline in the custom duty on nickel decrease in the duty is likely to benefit petrochemical
industry wherein LNG is used as a feed stock
– Export duty on ‘Other aluminium ores, including
laterite’ has been revised from nil to 15% – The integrated ‘oil major’ will likely have strong
bargaining power and will be the likes of one of the
Impact on Companies: bigger oil companies globally
– While reduction in custom duty on nickel is a positive – Highly beneficial for companies based out of energy-
for the stainless steel producers, overall impact starved country like India. Especially during the higher
on the steel industry remains neutral. The rise in crude oil prices
the export duty on aluminium ore would ensure its
domestic availability for higher aluminium production PIPES
Impact on the Industry: Proposals:
– This is likely to marginally increase the imports of – The Long-Term Irrigation Fund already set up in
specific categories of HR coils. A very few select NABARD to be augmented by 100% to take the total
manufacturers who produce these coils may face corpus of this Fund to R40,000 crore.
increase competition from imports.
– Dedicated Micro Irrigation Fund in NABARD to achieve
– As nickel (required for stainless steel production) ‘per drop more crop’ with an initial corpus of R5,000
is mainly imported, it is expected that the raw crore.
material cost is likely to get reduced. This is likely
to benefit the highly cost competitive stainless steel – Allocation to Pradhan Mantri Krishi Sinchai Yojana
manufacturing industry, which faces significant (PMKSY) increased to R7,377 crore from R5,767 crore
imports threat. in previous budget.
– Marginally Positive for the Aluminium Producers – Safe drinking water to over 28,000 arsenic and fluoride
affected habitations in the next four years under the
National Rural Drinking Water Programme (NRDWP).
Allocation to NRDWP has increased to R6,050 crore
Plastics News | F e b r u a r y 2 0 1 7 44
