Bangalore: The Karnataka government has sanctioned a special incentive package for the third phase expansion and upgradation project of Mangalore Refineries and Petrochemicals Ltd ( MRPL ), the company said.
The state government has exempted crude oil and plant and machinery besides soft loan for the expansion of the refinery on the west coast from 11.92 million tonnes per annum to 15 million tonnes, MRPL said in a statement.
Karnataka has exempted "MRPL from payment of entry tax on
plant and machinery and capital goods during the initial period of four years from the date of commencement of project implementation," it said.
Also, MRPL has been exempted from payment of entry tax on the "crude oil required for third phase over and above the refining capacity of first and second phase for 15 years from the start of commercial production of third phase".
Central sales tax exemption for 15 years from the date of commencement of commercial production of third phase for all inter-state sales made out of the third phase throughput has also been provided.
Besides, it has granted interest free soft loan equivalent to the VAT on sales of products in first three years would be given which would be repaid in 15 years equal annual installments.
"Soft loan equivalent to 60% of VAT on the sale of polypropylene, petroleum coke, LSHS, naphtha, LPG (incremental production), mixed xylenes and reformate to non-SEZ units from year 4 to 15 would be provided," the statement said.
Source: PTI
