Companies

Odisha not to extend tax sops to IOC’s Paradip refinery

Our Bureau New Delhi | Updated on January 13, 2018

The Odisha government has decided not to extend tax breaks to the Paradip refinery of public sector Indian Oil. Officials aware of the development told BusinessLine that the State government had decided not to extend sales tax deferment for products from the refinery beyond February this year.

The promised 11-year deferment on payment of sales tax on Paradip refinery products sold in Odisha will lapse this month. While the immediate hit for Indian Oil from the sops lapsing is about ₹2,000 crore, the burden will grow annually as more products are sold.

Indian Oil officials told BusinessLine that they have reappealed to the Odisha government seeking extension of the sops. “The State government is partly responsible for the delays in the commissioning of the project. We are in active dialogue with the Odisha government, urging them to reconsider their decision. Effectively the State has nothing to lose, the deferred sales tax burden will be eventually paid back by IOCL,” an Indian Oil official said.

Published on February 26, 2017

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