Indian Oil Corporation is likely to start construction on its much-delayed refinery and petrochemical plant at Paradip in Orissa by April next year.
"IOC Chairman Sarthak Behuria has informed the state government that it is set to start construction of the project from April," Orissa's Industries Secretary Ashok Dalwai told reporters here.
Behuria later told reporters the 15 million tons per year refinery and petrochemical complex would be commissioned by 2011-12 and IOC would invest about Rs 25,000 crore on the project. "The company is committed to spend Rs 2,000 crore immediately on it," he said.
The company has placed orders for Rs 600 crore of equipment for the project and land acquisition has been completed, official sources said.
Behuria, while informing Chief Minister Naveen Patnaik about progress of the project, urged the state government to make necessary legal provisions so that the company could avail sales tax exemption as agreed earlier.
The oil major would have to spend extra money as the laws under VAT did not allow exemption, Behuria pointed out during his discussion with the chief minister.
Sources said that Patnaik assured the IOC chairman the government would introduce a bill in the next session of the assembly to ensure the company gets tax exemption.
Source : The Hindu
5th November, 2007