Naveen discussed with Dharmendra on IOCL Impasse, Both are hopeful to resolve the stand-off
New Delhi, 18th Aug: The meeting between Chief Minister Naveen Patnaik and Union Petroleum Minister Dharmendra Pradhan to resolve the stand-off on revenue sharing between the State government and Indian Oil Corporation Ltd (IOCL) at the Odisha Bhawan today ended with a positive note. Though no statement was made by either of the leaders on the outcome of the meeting, both expressed hope to find a solution at an early date.
Talking to media after the meeting, Patnaik said, “We have discussed the ways to resolve the IOCL issue and are hopeful of an amicable and positive solution.”
Union Petroleum Minister of State (Ind) Pradhan also expressed hope for an early solution said, “We will work out on a solution which will be profitable to both the Odisha government and the IOCL,” adding that interest of the State will be safeguarded.
Among others, Chief Secretary AP Padhi and officials of the Petroleum Ministry were present at the meeting.
The Odisha government and IOCL had inked an agreement on February 16, 2004 for setting up an oil refinery at Paradip. One of the clauses in the agreement was that payment of the value added tax (VAT) on sale of products of Paradip oil refinery will be deferred until the refinery earns profit.
Now, odisha government is claiming that, as the refinery has started making profits, State government should get the tax revenue. Government issued a note to IOCL for the payment of tax amounting Rs 2,745 crore on February 27. On the other hand, the IOCL, which had collected VAT by selling its products in the State till December 2016 after it started production on September 22, 2015, is opposing the State government’s demand. Besides this, the state government also questioning IOCL about the decision to increase its capacity from nine million tonne to 15 million tonne without taking permission from the proper authorities.
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