Odisha Government withdrawn VAT incentives to Indian Oil Corp Limited’s Paradip Refinery, citing possible loss of Rs 22,745 crore.
The Finance Minister Pradip Kumar Amat said a MoU for interest-free credit for 11 years to the refinery project was signed between Odisha Government and IOCL in 2004 to complete the project by 2009-10 but it started commercial production in November 2015.
However, the State Government is not able to provide interest-free credit in terms of sales tax exemption for 11 years to a profit making PSU,” Amat said.