New Delhi: State-owned Indian Oil Corp (IOC) on Tuesday said it has paid Rs 2,935 crore to the Odisha government as part of the settlement reached to get back part of the tax incentives for the Paradip refinery project in the state.
Last month, the state government agreed to give Rs 700 crore per annum of interest-free loan for 15 years to IOC to make up for the withdrawn incentive of 11-year deferment on payment of sales tax (VAT) on Paradip refinery products sold in the state.
This essentially meant IOC would pay VAT on fuel sold in the state and in return would get an interest-free loan.
In keeping with the scheme, "IOC has paid Rs 2,935 crore to the Government of Odisha on Tuesday towards VAT payment for the period November 2015 to July 2017," the company said in a statement here.