New Delhi, Nov 10 (IANS) The PHD Chamber of Commerce and Industry (PHDCCI) has sought the removal of basic customs duty on liquefied natural gas (LNG), naphtha, and certain heavy petroleum feedstock and lower tariffs on petroleum coke used in aluminium manufacturing, as part of its wish list for the Union Budget 2027-28.
The industry body has also called for the continuation of the existing customs duty framework on steel scrap beyond March 2028, arguing that competitive access to critical industrial inputs is essential for lowering manufacturing costs and improving India’s global competitiveness.
The recommendations were submitted during a pre-Budget meeting with officials of the Tax Research Unit under the Department of Revenue, Ministry of Finance, on Tuesday.
“Strengthening India’s manufacturing competitiveness requires a comprehensive approach to reducing the cost of critical industrial inputs. Energy and feedstock costs have a cascading impact across multiple sectors, influencing production economics, investment decisions and the competitiveness of downstream industries,” PHDCCI President Anil Gupta said.
Among the key proposals is the removal of the existing 2.5 per cent BCD on LNG. With India meeting around half of its LNG consumption through imports, the chamber said eliminating the duty could improve the affordability of natural gas for energy-intensive industries.
The chamber has also sought a zero-duty regime for heavy petroleum feedstocks, including fuel oil, vacuum residue, slurry, and vacuum gas oil (VGO), when imported for refinery processing.
According to PHDCCI, access to alternative heavy feedstocks would provide greater operational flexibility to domestic refiners, particularly amid sourcing challenges associated with heavy crude oil due to geopolitical uncertainties. These materials also have applications in power, textiles, fertilisers, shipping, cement, tyre and rubber manufacturing, petrochemicals and road infrastructure.
On naphtha, another key petrochemical feedstock, the chamber has recommended removing the 2.5 per cent BCD. Naphtha is used to manufacture olefins, aromatics and other petrochemical intermediates that serve as inputs for plastics, packaging, automotive components, synthetic materials and chemicals. It is also used in the production of urea and other chemical products.
–IANS
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