(a) whether the Union Government has asked the State Government of Orissa to provide land infrastructure and tax concession for setting up of Paradeep refinery;
(b) if so, the details of such demands by IOCL;
(c) the response of the State Government in this regard;
(d) the capacity and cost of the refinery; and
(e) the time by which it is likely to start commercial production?
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SANTOSH KUMAR GANGWAR)
(a) to (c): The sale tax concessions approved by the Orissa Government in December, 1998/August,1999 for the refinery project were subsequently withdrawn in February,2000. To make the project viable and competitive, a package of incentives including issuance of 5% seven year maturity bonds by Indian Oil Corporation Limited (IOCL) to Orissa Government in lieu of sales tax, exemption of central sales tax for 30 years, exemption of entry tax on crude oil and certain other tax incentives during the construction period was submitted to the State Government. The State Government have approved in June, 2001, a package of special incentives for the project.
(d) The Government approved cost of the proposed 9 million metric tonnes per annum refinery project is estimated at Rs.8,270 crore.
(e) The refinery is likely to start commercial production during the year 2004-05.