IOC Paradip project to be finalized by September

13-May-05

Indian Oil Corporation (IOC) has recently reconfigured its project at Paradip from a refinery to a petrochemical complex, and announced a capacity increase up to 15 million tons from original 9 million tons. The project cost o has risen to over Rs 15,000 crore. The IOC board will take a decision on its revised Paradip refinery project by September, 2005. The Engineers India Ltd (EIL) is currently preparing the detailed feasibility report (DFR) of the project with help from Global Solutions. Once the DFR is ready, the IOC board will take it up for approval in August-September. After the board's approval, it will take about a year to prepare the detail engineering of the project, do the risk analysis and finalise the project management contracts etc. The proposed petrochemical complex will devote about 30-35% of the refinery capacity for production of various polymer and polyester products. Construction work will start towards end of 2006 and commission of the project is expected by the end of 2009. Before reconfiguration of the project, the state government had sanctioned a concession package of Rs 6,666 crore to the refinery that included deferment of sales tax payment for 11 years and exemption on payment of central sales tax, octroi, entry tax levied on machineries and electricity duty etc.