IOC To Invest Rs 52,000 crore In Odisha

State-owned Indian Oil Corp (IOC) will invest about Rs 52,000 crore in expanding Paradip refinery and setting up petrochemical complex after the Odisha government agreed to restore part of tax incentives, a top source said.

 

IOC will also withdraw a legal challenge moved at the Odisha High Court against the state government's decision to withdraw signed commitment.

IOC wanted Rs 1,000 crore per annum of an interest-free loan but in the end settled for Rs 700 crore loan over a longer  period of 15-years," said the sources. IOC will deposit applicable VAT or GST on products sold, he said adding the repayment of the amount will start in the 16th year for each  According to sources IOC will go full stream with the expansion of Paradip refinery capacity by 5 million tons a year as well as set up a polypropylene plant and a mono-ethylene glycol production facility in next 4-5 years.installment.VAT collected and not paid in 2015-16, 2016-17 and 2017 -18 will be deposited by IOC immediately. Odisha government will provide an interest-free loan to IOC for 2016-17 and three-quarters of the current year by December 2017 or January 2018 and every quarter thereafter.The source said the state government has also agreed to waive interest/penalty for the VAT withheld by IOC.

A joint petition will be filed in the Orissa High Court, Cuttack informing about the agreement, he said.The investments from IOCL will bring more employment for the youth of Odisha and more Tax revenue for Odisha Govt.