The Karnataka government has sanctioned a special incentive package for the Phase III expansion and upgradation project of Mangalore Refineries and Petrochemicals Ltd, the company said in a filing with the Bombay Stock Exchange (BSE).
Under the special incentive package, MRPL has been exempted from payment of entry tax on plant and machinery and capital goods during the initial period of four years from the date of commencement of project implementation.
MRPL won't have to pay entry tax on crude oil required for the third phase of refinery expansion for 15 years from the start of production.
For all interstate product sales made out of the Phase III project throughput, MRPL has also been exempted from paying central sales tax (CST).
Besides, MRPL is also eligible for 100 per cent soft loan on the eligible gross VAT during the first three years and thereafter at 60 per cent of all eligible VAT, on the sale of polypropylene, petroleum coke, LSHS, naphtha, LPG (incremental production), mixed xylene and reformate to SEZ units for 15 years, to be repaid in 15 years annual equal installments thereafter, of a value up to Rs500 crore.
MRPL has reported good progress in implementation of the Phase III expansion and upgradation project during the 2011-12 financial year. As of 15 May 2012, almost 94.70 per cent work of the Phase III expansion and upgradation work has been completed.