The Karnataka Government has sanctioned a special incentive package for Phase-III expansion and upgradation of Mangalore Refinery and Petrochemicals Ltd. (MRPL). This includes exempting the company 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.
MRPL will be exempted from payment of entry tax on crude oil required for the third phase over and above the refining capacity of the first and second phase, for 15 years from the start of the commercial production of the third phase.
It will be exempted from Central Sales Tax (CST) for 15 years from the date of commencement of commercial production of the third phase for all inter-state sales made out of Phase-III throughputs.
It will get interest-free soft loans at the rate of 100 per cent of the eligible gross VAT during the first three years and thereafter at 60 per cent of eligible gross VAT on the sale of polypropylene, coke, naphtha and LPG, says a release. The sops announced by the Government on the eve of the Global Investors Meet (GIM) were significant, U. K. Basu, Managing Director, told The Hindu .
Of the sops announced, he said, “It is a considerable advantage”. They would make a considerable difference to the viability of the projects at MRPL, which “is most important”, he said. The sops would be implemented “right away”.
