Bhubaneswar: The Indian Oil Corporation Limited (IOCL) and Odisha Government today inked a fresh MoU ending the longstanding impasse over the IOCL Refinery in Paradip.
The develoment in the issue came after a meeting chaired by Secretary of Ministry of Petroleum and Natural Gas, Chairman of IOCL and Chief Minister Naveen Patnaik.
During the meeting, Patnaik and PNG Secretary mooted for a amicable solution to the present impasse keeping in view the fiscal health of the state and commercial interest of the IOCL.
As per the agreement, Odisha offered for a Viability Gap Funding (VGF) of Rs 700 crore per annum as interest free loan for 15 years. Chaiman, IOCL, however stated that IOCL may not agree to a VGF funding below Rs 1000 crore, but PNG Secretary convinced the Chairman to consider state government’s proposal to resolve the issue so as to increase revenue and generate employment opportunity for the youths in Odisha.
Meanwhile, the IOCL have to deposit applicable VAT/GST collected but not paid by the company for 2015-16, 2016-17 and 2017-18 fiscals. The Odisha government, in return agreed to waive interest penalty for the VAT withheld by IOCL.
A joint petition will be filed in Orissa High Court by the two parties informing the Court about the agreement.