run by public sector firms and has barred units under construction by
private sector companies like Essar Oil from the benefit.
Finance Ministry on 30th May notified eight projects like Indian Oil's
Paradip refinery, HPCL-Mittal's Bhatinda unit and Bharat Petroleum's
Bina plant for extending seven-year holiday from payment of income
tax.
Besides 15 million tons Paradip refinery, 6 million tons Bina project
and 9 million tons Bhatinda unit, it also listed Oil and Natural Gas
Corp's 3,000 barrels per day and 1,500 bpd mini-refineries at Gandhar
in Gujarat and Tatipaka in Andhra Pradesh, official sources said.
Other projects eligible for tax breaks include Phase-III expansion of
Mangalore refinery by 5.31 million tons, 7.5 million tons capacity new
Visakh refinery expansion of Hindustan Petroleum, and 3 million tons
capacity expansion of IOC's Panipat refinery.
The seven-year income tax holiday to refineries will be available
before March 2012 only if they are owned by public sector company or
built by companies where state-run firms have 49 per cent stake.
For the refineries to be eligible for the tax sops they should have
been notified before 31st May, 2008 and only eight projects have been
notified, sources said.
These conditions have kept out refineries planned by Essar Oil at
Vadinar in Gujarat, Nagarjuna Oil at Cuddalore in Tamil Nadu and Cals
Refineries at Haldia in West Bengal out of the tax benefit purview as
they neither have public sector equity nor have been notified.
Sources said even though work on private sector refineries began much
before the sunset clause was introduced, the Finance Ministry has
ignored their cause.
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