Odish Govt- IOC Tax Dispute Relating To Paradip Refinery Might See Early Resolution

Odish Govt- IOC Tax Dispute Relating To Paradip Refinery Might See Early Resolution

The tax dispute between the Odisha government and Indian Oil Corporation might finally see an early resolution, thanks to intervention from petroleum minister Dharmendra Pradhan that has succeeded in breaking the deadlock in this matter.

The issue was discussed by Dharmendra Pradhan and chief minister Naveen Patnaik when the latter called upon the petroleum minister here on Friday and agreement was reached that deliberations should be held to find a middle path.

The dispute has arisen due to differing interpretations of the tax holiday by the oil PSU and the state government.

“Officers of the petroleum ministry, IOC and the state government will deliberate various issues and work out an acceptable solution at the earliest,” said a communiqué issued after the meeting.

Pradhan suggested that though the state had extended the tax concession in 2004, an amicable solution to the present impasse should be found keeping in view the fiscal health of the state and commercial interest of IOC.

Pradhan emphasised the need for finding a middle path, wherein both IOC and the state government can work out a mutual acceptable solution by climbing down from their stated positions, the official statement said.

Pradhan said it was important for the state government to incentivise the expansion plans of IOC to create petrochemical and downstream industries in the state.

Over a period of time, it will enable the state to increase its revenue and also create additional employment avenues for the youth of the state, whch will lay foundation of a new industrial ecosystem, facilitating industrialisation and fiscal consolidation.

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This was in keeping with the vision of the prime minister Narendra Modi to provide adequate resources for development and industrialisation of Eastern India, including Odisha, the release quoted Pradhan as saying.

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