India reinstates tax break for refineries to 2012

The Indian government moved to reinstate income tax exemption benefits to new refineries commissioned by March 2012. Finance Minister Palaniappan Chidambaram proposed in his budget speech to parliament that income tax exemptions be granted to new refineries for a period of seven years if they were commissioned before the deadline. The change of heart is expected to benefit state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation and Hindustan Petroleum Corporation, which are all building new refineries. BPCL is building a 6-million metric ton per year (mtpy) or 120,000 barrel per day plant at Bina in central Madhya Pradesh state and HPCL a 9-million mtpy facility at Bhatinda in northwestern Punjab state. IOC is proposing to build a new 15-million mtpy refinery at Paradip in eastern Orissa state. (May 1, 2008)