Meeting of Odisha CM and Petroleum Minister helps  resolve VAT deferment issue of IndianOil’s Paradip Refinery

Meeting of Odisha CM and Petroleum Minister helps  resolve VAT deferment issue of IndianOil’s Paradip Refinery

A meeting held between the Chief Minister of Odisha, Shri Naveen Patnaik, and Minister of State (Independent Charge) for Petroleum & Natural Gas, Shri Dharmendra Pradhan, here yesterday helped resolve the contentious issue of VAT deferment on products produced by Indian Oil Corporation’s Paradip Refinery in Odisha and sold in the State.

Various options available to reach an amicable settlement of the tax dispute between IndianOil and the Government of Odisha were discussed at the meeting, which was also attended by Secretary, Ministry of Petroleum & Natural Gas; Chairman, IndianOil; Chief Secretary, Government of Odisha; and Development Commissioner, Odisha.

In line with the Hon’ble Prime Minister, Shri Narendra Modi’s vision of providing adequate resources for the overall development and industrialisation of Eastern India, including Odisha, an amicable solution has been found to resolve the impasse. Keeping in view both the fiscal health of Odisha State and the commercial interests of IndianOil, the Government of Odisha has now agreed to extend the deferment of VAT on products produced by Paradip Refinery and sold in the State from 11 to 15 years but with a cap of Rs. 700 crore per year.

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