Kerosene ST hike to benefit Reliance — Rane

Elaborating his contention, Rane said in view of the massive hike in the sales tax on industrial kerosene, a large number of petroleum companies will not enter Maharashtra. At the same time, benefits on payment of sales tax will accrue to Reliance Petroleum Corporation for eight years, he alleged.

"Under such circumstances, the hike will have no adverse impact on the Ambanis, on the contrary, it will be able to retain its monopoly in the kerosene trade its competitors will virtually run away from the field," Rane, who is also the Leader of Opposition, alleged.

In his budget presented to both the houses on March 22, Finance Minister Jayant Patil had stated that in order to discourage the adulteration of diesel with kerosene, the government has decided to increase the rate of tax applicable to industrial kerosene from eight per cent to 20 per cent.

Describing the budget as directionless and lacklustre, Rane said the Congress-led Democratic Front had strongly criticised the erstwhile Sena-BJP government for landing the State in its worst ever financial crisis. Now, the same people have declared their intention to float bonds to garner Rs 3,200 crore for completion of on-going irrigation projects.

"No doubt, we had raised bonds for developmental works. However, during our tenure, the State’s per capita income was the highest in the country while now, it has touched an all-time low," Rane said.

In his hour-long speech, Rane also mentioned some of the major policy decisions when he was at the helm of affairs. "We took a risk and began to implement major irrigation projects, mainly to impound the Krishna waters. Had we not done this, we would have no alternative but to abandon our claim on the quota of water allotted to us by the Krishna Water Disputes Tribunal’s award," he pointed out.

Finance Minister Jayant Patil will reply to the debate on Tuesday.

On the appointment of former Home Secretary Madhav Godbole to advice the government, Rane said, way back in 1987, the same bureaucrat had introduced the concept of zero-budgeting. However, the file was closed and the government began recruitment on a large scale.