Uncertainty shrouds Indian Oil Corp.'s (IOC) Rs 46,000 crore Paradip oil refinery project. The project, already delayed by about seven years, seems to be on the verge of yet another delay. The viability of the project has come under pressure once again, as the Centre has decided to withdraw fiscal incentives from April 1, 2009. The seven-year tax holiday extended to Paradip Refinery will expire on April 1, 2009. In the seven years, the project cost has shot up to Rs 46,000 crore, from the Rs 15,000 crore that was originally estimated.
The uncertainty of the Paradip refinery project will affect the setting up of the Petrochemical and Petroleum Investment Region (PCPIR) as the refinery is its anchor project.