By Bizodisha Bureau, Bhubaneswar, Apr 1, 2017 : Union Petroleum minister Dharmendra Pradhan on Saturday said that the Indian Oil Corporation Limited (IOCL) is ready to sign a new agreement in the wake of the dispute raised by the Odisha government over VAT dues.

“I have written to the Chief Minister of Odisha mentioning that the current government at Centre is not responsible for delay in commissioning of the Paradip Refinery. Without any suffering further losses it is right to settle the matter mutually. The Centre is ready to hold discussions with the State in this regard,” said Dharmendra.

Moreover, the Oil minister has also assured that he will look into employment of Odias in the refinery.

However, the state cooperation and excise minister, Damodar Rout issued a stern warning against IOCL saying that the company has duped the people of Odisha and if Dharmendra takes any steps in this regard, the refinery will be shut down.

“There is no need for discussions and if Dharmendra takes any steps in this regard then the refinery will be shut keeping in mind the loot that is going on there. Public is agitated there.” said Damodar.

The ruling party Biju Janata Dal [BJD] has raised questions on the employment potential of the project and said that the State government is ready to knock on Supreme Court’s door in this matter.

On February 16, 2004, the State government and IOCL had signed a MoU for Paradeep Refinery in which the former had agreed to defer collection VAT on all output from the refinery during the first 11 years of the commencement of the unit. Moreover, the VAT for the concerned period will be treated as loan and IOCL had to start paying VAT from 12th year onwards.

The State government issued notice to IOCL, citing that the refinery owes Rs 1,485 crore for the period beginning with the operationalisation of the refinery in 2015 till December 2016.

However, later the Orissa High Court ordered the Odisha government to keep in abeyance the demand notice that it had issued to Indian Oil Corporation Ltd (IOCL) to recover pending taxes to the tune of Rs 1,485 crore.