Reliance gets approval as export-oriented refinery

Reliance Industries Ltd. (RIL) received government approval to convert its existing 33-million-ton-per-annum (MTPA) refinery in Jamnagar into an export-oriented one. The move will benefit RIL in two ways. First, the company will be entitled to export its entire production to overseas markets and will also enjoy an income tax holiday till March 2009. Second, the company would not have to pay the 5% duty on its crude oil imports. The company currently imports around 216 million barrels of crude oil per annum. At US$60 a barrel, the company spends close to US$13 billion a year to import crude oil. RIL could save approximately US$648 million per year on duties alone. (March 27, 2007)