Public sector Indian Oil Corporation (IOC) said that it has paid Rs 2,935 crore to the Odisha government under the settlement of tax dispute related to Paradip refinery project. "IOC has paid the Value Added Tax (VAT) of Rs 2,935 crore from November 2015 to July 2017 to the Odisha government," the company said in a statement.

They further said, "It was agreed that the Odisha Government will get VAT/goods and service tax (GST) from the IOC on a regular basis. In return, the Odisha government will continue to give the interest-free loan of Rs 700 crore every year for the next 15 years."

It is notable that the ongoing dispute between the state government and the IOC was settled last month.

According to the reconciliation, the state government had agreed to provide interest-free loans for 15 years in order to eliminate the 11 years of exemption of Paradip plant's products from sale in the Odisha state.

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