Doubling of the projected costs has coerced Indian Oil Corporation (IOC) to rethink plans for a petrochemicals project in Paradeep, Orissa. Rising cost of equipment, land development, raw material, labour and other factors of production have propelled costs. IOC had earlier projected a cost of Rs 26,000 crore to build a refinery and a petrochemicals plant at the Paradeep Port. The revised cost estimates have surged past Rs 45,000 crore. IOC, the nation's biggest refiner has decided to shelve its plans to build a petrochemical plant at Paradeep in Orissa as of now. Plans to build the refinery remain undisturbed, but construction of the complex will be in phases. IOC now plans to invest Rs 29,000 crore to establish the refinery alone.
IOC has posted a net loss of Rs 414 crore for Q4 ending March 31, due to under-recoveries, against a net profit of Rs 1,610 crore in the same quarter previous year. The state-run company's revenue for the quarter was Rs 71,790 crore, up 33% from the same quarter previous year.