New Delhi: The ongoing dispute between Odisha Government and Indian Oil Corporation Limited (IOCL) was resolved on a mutual agreement basis, informed Union Petroleum and Natural Gas Minister Dharmendra Pradhan.
Addressing a press conference at New Delhi on Saturday, Pradhan informed that consensus has been reached between both the parties with Odisha agreeing to provide Rs 700 crore interest free loan annually to IOCL for a period of 15 years taking into account 2016-17 last financial quarter.
As per the fresh understanding, IOCL will start repayment from the 16th year onwards. Out of the estimated tax collection of Rs 2,200 crore by IOCL, Odisha will get nearly Rs 1,500 crore after giving away Rs 700 crore loan.
The development comes barely a day after a high level meeting between Odisha Chief Minister and Union Minister Dharmendra Pradhan on the issue in Delhi yesterday.
Later in the evening, Odisha Chief Secretary AP Padhi, secretary of the Petroleum and Natural Gas Ministry and other officials subsequently finalised the modalities after a meeting.
“It is agreed that Odisha government will give interest free loan of Rs 700 crores for 15 years and total deferment of VAT. This would give a substantial amount of additional revenue of Rs 1500 crore per year to Odisha,” said Pradhan.
Earlier, there was a dispute between both parties over VGF and deferment of VAT allowed to the oil major for VAT deferment to IOCL's Paradeep oil refinery for 11 years in 2004.
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Pradhan further informed that the recent development assumes significance as it would be in Odisha’s interest keeping in view the proposed Rs 50,000 crore investment plans of IOCL.
The investments will be a boost to the industrialisation as several down stream and ancillary units will come up and create job opportunities for the people of the State.
“This is a historic day for Odisha as the dwellers of the state have got their dues without spoiling the industrial atmosphere of the state,” said Pradhan in a tweet.