ONGC wants to take Opal out of SEZ as domestic demand grows


ONGC wants to take Opal out of SEZ as domestic demand grows

With the rising domestic demand for petrochemicals, ONGC Petro additions (OPaL), a JV between ONGC, Gujarat State Petroleum Corporation and Gail at the Dahej SEZ, is working towards getting the domestic tariff area (DTA) access to gain from the lower tax regime now.

A DTA setup enables a company to set up manufacturing units that cater to the domestic market, while an SEZ unit is meant only for exports. Also fewer documentation and monitoring are required in DTA units compared to SEZ units.

“We began our business from the SEZ, but our exports are hardly 15 percent of total sales. We are now working towards getting access to the DTA so that we can serve the domestic market,” OPal managing director Avinash Verma told reporters on the sidelines of a petrochemicals summit. Read More

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