BP Exploration (Alpha) Ltd, a wholly owned subsidiary of BP plc, had on June 11, 2014 submitted an application for authorisation to market aviation turbine fuel (ATF) claiming
to have invested USD 477 million in the country.

The Oil Ministry in March wrote to Europe's second- largest oil company saying that its USD 477 million investment in India till date does not qualify it to begin selling jet fuel to airlines.

"To get marketing rights for transportation fuels, namely petrol, diesel and ATF applicant must meet the requirements... The requirements interalia, include investment or proposed investment of Rs 2,000 crore in exploration or production, refining, pipeline or terminals leading to additionality to the existing assets and/or creation of new assets in the eligible activities," Pradhan told the Lok Sabha.

In a written reply to a question, he explained that of the USD 477 million BP claimed to have invested in India, USD 259 million was said to a capital investment and another USD 2.3 billion was proposed to be further invested.

With reference to this application dated June 11, 2014, Directorate General of Hydrocarbons (DGH) has reported that BP share of expenditure was USD 508 million between 2011-12 and 2013-14 of which the capital expenditure (capex) component and operational expenditure (opex) component is USD 171 million and USD 337 million respectively.

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