The Finance Ministry has rejected a proposal to allow sale of fuel from EOU or SEZ refineries in the domestic market, Minister of State for Commerce and Industry Jairam Ramesh said on Wednesday.
Export-oriented units (EOU) or those in Special Economic Zone (SEZ) are given fiscal benefits for committing to export products produced.
Reliance Industries had converted its Jamnagar refinery into an EOU in 2007, but last year Petroleum Ministry asked for approval of finance and commerce ministries to allow it to sell products to state-run oil firms who faced shortfall.
Ramesh in a written reply to a question in Rajya Sabha said the proposal was received from the oil ministry.
"The proposal has not been supported by the Ministry of Finance and the same has been communicated to Ministry of Petroleum and Natural Gas," he said.