The Hindu Business Line : Non-licensed furnace oil users face supply ban

Mumbai, July 20 In what is turning out to be a burning issue for furnace oil users in Maharashtra, the State Government has directed oil companies not to sell furnace oil to traders who have not obtained a licence from the Controller of Rationing and Director of Civil Supplies or District Collectors.

On July 4, the State Government set an August 4 deadline for procuring the licence, after oil companies stopped supplies on July 3 and 4.

However, in a recent letter to the oil companies, the State-level co-ordinator, Maharashtra, said: “We are enclosing herewith letter ref solvent - 1007/399/pra.kra.2618/na.pu.24 dated July 12, 2007 received from the Under Secretary, Food, Civil Supplies and Consumer Protection Dept., Govt of Maharashtra by fax on July 16, 2007. Kindly note that the date of extension (for obtaining Slop Licence) has been revised to 27/7/2007 instead of 4/8/2007.”

Traders in dilemma

“About 75 per cent of furnace oil users are yet to receive their licence. Companies which had applied 10 months earlier are yet to get them,” said a trader.

“Every time we approach the licencing authority, they ask for additional papers. Last week, they wanted us to produce our factory licence, which has been submitted for renewal. Even after showing the receipt of the renewal application, they insisted that we produce a ‘valid factory licence’. With the deadline nearing, we really don’t know how to go about the issue,” said a member of Taloja Manufacturers’ Association.

The licensing authorities are reported to be demanding the non-agricultural land (NA) certificate from some companies which have been in existence for many decades.

“They are asking us to get the NA from the Collectorate, Mumbai. My factory is here for the last 57 years. How can I get the NA at such short notice?” asked an auto parts manufacturing unit representative.

High demand

The demand for furnace oil is very high in Maharashtra, compared to other States. Of the total annual sale of 4.5 million tonnes in 2006-07, Maharashtra consumed 1.7 million tonnes, valued at Rs 3,400 crore.

Furnace oil, a derivative at the penultimate stage of crude refining, is used in almost all sectors except electronics, engineering and information technology.

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