Bloomberg News

Indian Oil Falls as Court Orders Payment of Levies: Mumbai Mover

February 01, 2012

Feb. 1 (Bloomberg) -- Indian Oil Corp., the nation’s biggest refiner, plunged the most in 14 months after saying a court ruling ordering it to pay levies on crude supplies to Uttar Pradesh state will have “financial implications.”

The state-owned refiner dropped 6 percent to 271.45 rupees in Mumbai, the steepest fall since Nov. 25, 2010. The High Court of Allahabad dismissed Indian Oil’s petition against the Uttar Pradesh Entry Tax Act of 2007 and upheld the validity of the levy, Indian Oil said in a stock exchange filing today.

India’s top court on Jan. 17 ordered the company to deposit half of the tax payable to the government of Uttar Pradesh state, where 12 percent of the company’s refining capacity is located, and submit a bank guarantee for the remainder till it reaches a verdict, according to the statement. The matter is being examined legally, Indian Oil said.

The refinery at Mathura has an annual processing capacity of 8 million metric tons a year, according to Indian Oil’s website. The company’s total refining capacity is 65.7 million tons a year.

--Editors: John Chacko, Arijit Ghosh

To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net


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