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Regular-article-logo Wednesday, 18 June 2025

'VAT hike on fuel not good'

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The Telegraph Online Published 29.12.14, 12:00 AM

Union minister of state for petroleum and natural gas Dharmendra Pradhan speaks to Subhashish Mohanty of The Telegraph during his visit to the state. He spoke on various issues ranging from coal block allocations to the issue of alleged central negligence. Excerpts from the interview:

Chief minister Naveen Patnaik said the Centre had always neglected Odisha. How do you respond to it?

The Centre has always worked for Odisha's development, be it during Vajpayee's time or now, under Narendra Modi. It is a baseless allegation.

But the BJD is still of the view that Odisha has been subject to central negligence...

We know that the Odisha government is indulging in a psuedo war with the Centre. It is making veiled attacks against the Centre.

What steps have been taken by the Modi government for Odisha's overall development?

We have made three to four major policy decisions under which the state will be immensely benefited. For example, through the e-auction of coal blocks, the state government will benefit to the tune of Rs 1.5 lakh crore in the next 15 years.

Can you clarify it in detail?

Suppose the Utkal D block is auctioned at Rs 500 crore in the market, the entire money will come to Odisha's exchequer and not to the central exchequer. The decision of the Modi government will benefit all the coal-bearing states, including Chhattisgarh and Jharkhand.

What other steps you have taken to improve the state's economy?

We have increased the royalty on minerals. Besides, we have planned to invest Rs 1 lakh crore in the state's petroleum sector.

The UPA government had initiated steps to revival the Talcher fertiliser plant. What's its status and when will it be commissioned?

We want to see that the revival of the plant is over by 2019. The MoU has been signed. Around Rs 9,000 crore will be invested in the project, and the plant will produce 1.3 million tonne urea and other fertilisers.

At a time when the prices of petroleum products have dipped, Odisha government has increased the value added tax (VAT) on petrol and diesel. How do you respond to it?

The issue of imposing tax comes under the state's purview. However, increasing VAT on petroleum products is not good after a government has been in power for 15 years.

Recently, the Centre has announced that it would launch concessional LPG schemes for BPL families. Will Odisha be included in this scheme?

Odisha has been included in the LPG scheme for BPL families which is scheduled to be launched on a pilot basis from January. Under the scheme, a BPL family can get a subsidy of Rs 1,200 to Rs 1,400 while taking a gas connection. Now, for a single gas connection, one has to spend nearly Rs 2,400. Efforts will be made to bring Odisha at par with the rest of the country in terms of number of gas connections.

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