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India routes HSD, ATF, petrol import via state firms

EXIM POLICY

India said on Saturday it would allow the import of petrol, diesel and aviation turbine fuel (ATF) by end-users but retained control by routing the purchases through state trading agencies.

"Imports of items like wheat, rice, maize, petrol, diesel, ATF and urea will be permitted only through the designated state trading enterprises which will function on commercial principles in accordance with Article XVII of GATT," trade minister said.

The Export-Import Policy for 2001-02 lifts quantitative restrictions on the three fuels but imposes import restrictions to "ensure safety and security of our citizens and safeguard our bio-security concerns," Commerce Minister Murasoli Maran said.

Earlier, only state-run Indian Oil Corp was allowed to import the three products, pricing and marketing of which is still controlled by the government.

Petroleum Minister Ram Naik said on Friday that pricing of ATF would be deregulated from April 1 as part of India's plan to liberalise the oil sector by April 2002.

Private and multinational firms are allowed to import the remaining two controlled products kerosene and liquefied petroleum gas (LPG) for direct sale to consumers.

"(The new policy) does not mean throwing the gates wide open," he said. "Eternal vigilance is absolutely essential to guard against the opening of the floodgates of imports."

India has five-year-long Export-Import (Exim) policies -- the current one runs from April 1997 to March 2002 -- but it fine-tunes the policy every year.

As part of the government's efforts to ensure India did not face a flood of imports, Maran said a "war-room" would be set up for tracking, collating and analysing data on 300 sensitive items of public importance.

ALSO READ:
Exim Policy 2001-2002: Full coverage
Union Budget 2001-2002: Full coverage

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