Orissa High Court may lift the restriction imposed on construction of a water intake system on Mahanadi river in Cuttack for Indian Oil Corporation Limited (IOCL)'s Paradip refinery project, subject to a proposal by IOCL to invest a substantial amount on peripheral development, when the petition filed by it for modification of order imposing the restriction is taken up on October 19. The bench has hinted that it expected IOCL to take up peripheral development in the form of dredging of Mahanadi river around the land mass where the construction work was undertaken for the water intake system, increasing the capacity of the reservoir of barrage at Jobra and strengthening the river embankment along Ring Road. The court further expected "supply of drinking water from the intake well for Cuttack city through the public health department".
Construction work of the intake system had stopped since July 30. The high court had imposed restrictions on it on July 29 in an interim order. The IOCL had filed a petition for lifting the restrictions stating that water was one of the main utilities and essential for commissioning of the refinery project as per schedule in March 2012. The intake system is required to be completed and commissioned by September 2011 so as to carry out trial running and commissioning in next two months to be in readiness to supply water to the refinery project by November 2011