The loss to the state exchequer will be over 11% of the commercial tax target of Rs 17,500 crore in the current financial year.
In this regard, the state government has requested the Union Ministry of Petroleum and Natural Gas to reconsider the VAT deferment.
Notably, IOCL has commissioned the 15 million tonne crude oil refinery at Paradip at a cost of Rs 34,555 crore.