India: IOC Wants Refinery Tax Break Extended
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Monday, 05 December 2011 |
Indian Oil Corporation (IOC) has requested that the Government extend a tax break for refineries so that its Paradip facility can benefit from the measure. The Government previously introduced a seven-year exemption on income tax for refining crude oil that applied to facilities commissioned by March 2012. When the measure was introduced, it was anticipated that the state-run IOC’s refinery at Paradip would be commissioned in time for this deadline.
However, the refinery has run into difficulties with land acquisition and is running behind schedule. The Paradip refinery, which will have a capacity of 15m tons a year, is now expected to come on-stream in September 2013.
Product from the Paradip facility will be sold in the domestic market rather than exported as previously planned. The refinery will produce 5.97. tonnes of diesel, 3.4m tonnes of petrol, 1.45m tonnes of kerosene, 536,000 tonnes of LPG, 124,000 tonnes of naphtha and 335,000 tonnes of sulphur. It is being configured to process tough, heavy and dirty crude, and will have a Nelson Complexity Index of 13, the highest in the world.
PetrolWorld 05122011
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