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Petrochemical hub at Panipat soon

By Our Special Correspondent

CHANDIGARH, JUNE 22. An international-scale petrochemical hub is to be set up at Panipat by the Indian Oil Corporation (IOC). It will involve an investment between Rs. 25,000 crores and Rs.30,000 crores and generate employment opportunities for 50,000 people.

The Haryana Government today signed a Memorandum of Understanding (MoU) with the IOC for this project. It was signed by S.C.Chaudhary, Commissioner, Industries, on behalf of the Haryana Government, and N.K.Nayyar, Director, Planning and Business Development, on behalf of the IOC. The Haryana Chief Secretary, A.N.Mathur, and senior officials of the State Government and the IOC were present. The IOC will initiate all necessary steps to speed up implementation of the project of Naphtha Cracker complex and downstream polymer facilities to complete the construction work of the complex by 2007-2008.It would make a direct investment between Rs. 16,000 crores and 17,000 crores including about Rs. 8,000 crores for the Naphtha Cracker and Polymer Complex which would have a capacity to produce 0.8 million metric tonnes of Ethylene per annum. Apart from the Naphtha cracker unit, the project would have associated units like hydrogenation, Butadiene extraction and Benzene extraction. It would also have a swing unit for production of Linear Low Density Polyethylene/High Density Polyethylene (LLDPE/HDPE), dedicated HDPE unit, Poly-propylene unit and Mono Ethylene Glycol (MEG) unit. It would also have utility facilities and associated equipment as well as installations. There would be warehouse facilities for storage of solid products and tank farms, tankages or storage facilities including finished products and intermediate storage tanks. The project would also have suitable despatch and essential housing facilities.

According to the MOU the Haryana Government would extend financial assistance to be quantified at 75 per cent of the tax paid on the sale of goods produced in the complex under the Value Added Tax Act, 2003 for a period of seven years from the date of start of commercial production and 50 per cent tax paid under the Act for a further period of three years thereafter, as interest free loan repayable after a period of seven years from the date of grant of such a loan to the IOC or its legal entity for this project. The Haryana Government would also extend the benefit on Central Sales Tax, which would be levied, charged and paid at 25 per cent of the prevailing rate or

inter-state sale of goods produced in the complex against declaration in Form `C' for a period of seven years beginning from the date of commercial production and at a rate of 50 per cent of the prevailing rate for a further period of three years on the same terms. The IOC would be exempted form the payment of certain taxes or duties or charges.

The State Government would also assist the IOC for acquisition of land, its conversion, continuation of giving right of user for laying of gas pipeline like Dadri-Panipat and support long term tie-up with its departments and undertakings for the supply of petroleum, oil and lubricants.

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