NEW DELHI: Odisha government, which had withdrawn tax incentives to the Rs 34,555-crore Paradip refinery of IOC , has agreed to restore some of the tax breaks including a Rs 700-crore per annum of interest-free loan, Oil Minister Dharmendra Pradhan said today.The breakthrough came after Pradhan met Odisha Chief Minister Naveen Patnaik here yesterday. "This would give a substantial amount of additional #revenue (Around Rs 1,500 crore per year) to the state of #Odisha. #ParadipRefinery," he said in another tweet. The repayment of the amount will start in 16th year for each instalment, they said.VAT collected and not paid in 2015-16, 2016-17 and 2017 -18 will be deposited by IOC immediately. Odisha government will provide interest-fee loan to IOC for 2016-17 and 3 quarters of current year by December 2017 or January 2018 and every quarter thereafter.Sources 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, they said.

Source: Economic Times August 19, 2017 09:56 UTC