IOCL offers Odisha government interest-free bonds for Paradip refinery

IOCL has offered interest-free unsecured bonds to the Odisha government to make the Paradip refinery project viable, after the state withdrew fiscal incentives for the project. On December 29, 2016, the Odisha government issued a notice to IOCL withdrawing the fiscal incentives given to the project, as the commissioning of the refinery had been delayed by several years. The state government is also of the view that the refinery no longer needs incentives as its profitability has increased due to the refinery having a higher capacity and the low prevalent global oil prices. However, according to IOCL, the Paradip refinery is yet to achieve profitability on a stand-alone basis and that its investment in higher refinery capacity and downstream petrochemical plants will only lead to greater economic activity and employment in the state.