Odisha withdraws interest-free loans to IOCL Paradeep Oil Refinery

Odisha Government withdrawn VAT incentives to Indian Oil Corp Limited’s Paradip Refinery, citing possible loss of Rs 22,745 crore.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.