(a) whether Ministry of Finance has opposed the decision to exempt duty on Ethanol as reported in the `Dainik Jagran` dated July 18th, 2005;
(b) if so, the reasons for not considering the exemption of duty on Ethanol by Ministry of Finance;
(c) the reaction of oil companies thereto; and
(d) the remedial measures taken by the Government in this regard?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S.PALANIMANICKAM)
(a) Yes, Sir.
(b) Taking into consideration the revenue implication,
difficulties in implementation, demand and supply
position of ethanol and the fact that such a concession
may affect availability of ethanol for the chemical
industry, it was decided not to exempt ethanol for
blending with petrol.
(c) Representations of oil companies is not known to this
Ministry, but some of the oil companies had earlier
sought that the concessional excise duty on petrol for
blending with ethanol may be continued.
(d) Representations for restoration of the concession were
examined and it was decided not to accept the same.