New Delhi, Nov 09: The state-run Indian Oil Corp (IOC) has said that it is prepared to build the Rs 12,400 crore Paradip refinery by 2009-10 provided the Orissa Government restores the tax concessions it had granted in August 1999. "In case Orissa government restores 100 per cent sales tax incentives, IOC would endeavour to complete the project by 2009-10 taking into account the projected product availability in the medium term," the company has informed the Government. Along with restoration of the original package of tax incentives from Orissa state, IOC has requested the removal of a five-year cap on exemption of entry tax on crude oil.

IOC had earlier stated that the 9 million tonne refinery was unviable in medium term as it would end in a glut of petroleum products forcing other refineries to export or run below optimal capacity.
The refinery economics was based on Orissa government`s incentives that were subsequently withdrawn in February 2000. The incentives were partially restored in July 2001 but these amounted to merely 32 per cent of the original concessions. Bureau Report