Indian Oil plans to set up a petrochemicals complex at the Paradip refinery in Odisha. Photo: BloombergNew Delhi: State-owned Indian Oil Corp. Ltd will invest about Rs52,000 crore in expanding the Paradip refinery and setting up petrochemical complex, after the Odisha government agreed to restore part of tax incentives, a person aware of the development said. The state government has agreed to give Rs700 crore per annum of interest-free loan for 15 years, to make up for the withdrawn incentive of 11-year deferment on payment of sales tax on Paradip refinery products sold in the state. The person said IOC and the Odisha government will sign an addendum for the original tax incentive agreement of 2004. The person further said that the state government has agreed to waive interest/penalty for the VAT withheld by IOC.

Source: Mint August 20, 2017 13:07 UTC