U.K. Basu, Managing Director, Mangalore Refinery and Petrochemicals Ltd. (MRPL), told The Hindu that the sops extended to it by the Government will make MRPL's products more attractive to other States.
The products were polypropylene (which the whole of South India buys for using as input in white goods (such as refrigerator components and television sets); sulphur (bought in Kerala as input for fertilizer industry); coke, mostly in demand in Karnataka, naphtha, which is bought in Goa, Tamil Nadu, and Kerala.
MRPL sells LPG to other States. However, since LPG was sold to oil marketing companies (OMCs), it was not possible to tell immediately exactly how much quantity was being sold to which State, he said.
For every product manufactured and sold in Karnataka by MRPL, a VAT of 12 per cent had been imposed. “Whatever sales we (MRPL) do, Karnataka collects VAT. This will not be retained (by the State). From now on, we will retain it for 15 years. This is called deferred payment,” he said. The amount of the VAT collections is Rs. 500 crore a year. If the amount exceeded Rs. 500 crore, the balance would go to the State, he said.
