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New Delhi, March 30
The government has rejected British Petroleum’s application for selling Aviation Turbine Fuel (ATF), saying its expenditure in India so far does not qualify it to get a fuel retailing licence, but has allowed it to apply afresh with more details.
The Petroleum Ministry, earlier this month, wrote to Europe’s second-largest oil company, saying its $477-million investment in India to date does not qualify it to begin selling jet fuel to airlines, a senior Oil Ministry official said.
A licence to retail any of the transport fuels — petrol, diesel or aviation turbine fuel (ATF) — is contingent upon a company investing or proposing to invest Rs 2,000 crore in oil and gas exploration and production (E&P), refining, pipelines or terminals within 10 years.
To qualify for a fuel retailing licence, an entity should have made capital investment of Rs 2,000 crore or $500 million, in line with the 2002 fuel retailing guidelines.
British Petroleum’s $7.2 billion spending in buying 30 per cent stake in 21 exploration blocks of Reliance Industries Limited is not being considered as capital investment, he said. — PTI
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