Only state-run refineries to get tax holidays

India’s Finance Ministry has restricted tax holidays to only new refineries run by public sector firms and has barred units under construction by private sector companies like Essar Oil to benefit. On May 30, the ministry notified eight projects like Indian Oil’s Paradip refinery, HPCL-Mittal’s Bhatinda unit and Bharat Petroleum’s Bina plant that it was extending the seven-year income tax holiday. Other projects that are eligible for the tax breaks include the Phase-III expansion of the Mangalore refinery by 5.31 million tons, the Visakh refinery expansion of Hindustan Petroleum, and the three million ton capacity expansion of IOC’s Panipat refinery. These conditions have kept out refineries being planned by Essar Oil at Vadinar in Gujarat, Nagarjuna Oil at Cuddalore in Tamil Nadu and Cals Refineries at Haldia in West Bengal. (June 5, 2008)