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MCGM COUNTS ITS OCTROI LOSSES IF HPCL SHIFTS OUT OF CITY

hpcl-2The country’s richest civic body is set to lose a large chunk of its annual octroi collections if Hindustan Petroleum Corporation Ltd shifts out of Mumbai, as proposed. Currently, the state-run oil and gas company pays the MCGM an average of Rs 350 crore annually in octroi levied on crude oil. HPCL has paid Rs. 318 Crore as octroi tax to MCGM for the period April 2009 to March 2010. However ever since HPCL got clearance from the Ministry of Petroleum and Natural Gas to conduct a feasibility study on shifting its Chembur refining operations out of Mumbai to a new facility that could be planned further south along the Konkan coast, the MCGM is fearing loss of revenue. The shift will hamper octroi collections but the MCGM will continue to get octroi for the supply of crude oil to Mumbai for the city’s needs. Even then the loss would be a large percentage. Bureau report – NMTV News.

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