Indian Oil seeks Tata-like sops for acetic acid plant

Indian Oil seeks Tata-like sops for acetic acid plant

GANDHINAGAR: The Indian Oil Corporation (IOC), Vadodara has submitted a proposal for a Rs 8,000-crore acetic acid plant and is seeking concessions on the lines of those given to Tata Motors Ltd and Maruti Suzuki India Ltd by the state government under the Mega and Innovative Project schemes.

In a formal proposal, the company has stated that though the plant won’t create many employment opportunities, it will boost ancillary and derivative industries.

The company has also demanded various exemptions exemption or refund of VAT paid on purchase of capital goods; exemption from works contract tax; exemption on entry tax paid in Gujarat; exemption or subsidy on duty paid for electricity consumed by the proposed project, exemption on stamp duty payable for purchase of land and building or on property taken on lease.

The IOC has indicated that it had received similar benefits for its natural gas-related projects in Tamil Nadu. The governments of Haryana and Orissa had also given it incentives for their projects, the company has stated.

Sources said that the state government is in the process of finalizing the Ultra Mega, Mega and Large Project schemes under which industries will be eligible for various incentives.

“However, as the petrochemicals sector is currently not eligible for inclusion under the Mega project scheme, the government committee set up to finalize the schemes has proposed that the sector be included,” said a source. “The IOC’s proposal will be considered only after finalization of the schemes.”

The IOC is not the only company that has asked for concessions. CEAT Tyres and Indian Steel Corporation have also proposed to invest around Rs1,200 crore if the state government approves their projects under the Mega scheme.

Share Button