With Budget 2003-04 failing to live up to the expectations of oil sector, Petroleum Minister Ram Naik will separately plead for fiscal incentives including duty cut and infrastructure status for liquefied Natural Gas imports.

"We will continue to hold dialogue (with finance ministry) for fiscal incentives for LNG to make it competitive with domestically produced natural gas," Naik said.

The Budget had only half-heartedly reduced customs duty on capital goods for LNG plants from 25 per cent to 5 per cent and larger demands like zero duty on LNG and infrastructure status for LNG projects did not find mention in the Budget.

"It is more important that customs duty on LNG be brought to nil (from current 5 per cent) so as to make it cheaper," he said.

"We would also seek declared goods status for LNG to attract only 4 per cent sales tax as against present scenario of highs of 24 per cent," Naik said.

LNG is costlier as the gas is first liquefied then transported through ships and has to be again re-gassified at the import country.

PTI