Indian Oil Corporations' Paradip refinery cum petrochemicals project proposal could finally see the light of the day. IOC has prepared a detailed feasibility report (DFR) on the project, which will be placed before the project evaluation committee in October, following which Indian Oil would seek the approval of its board of directors for investment in the project.
As per the DFR, IOC will propose commissioning of the 15 million ton refinery using fluid catalytic cracking route, in the first phase, to produce polypropylene and polystyrene and back it up with a naphtha cracker plant, and in the second phase, to produce a wider range of products including mono ethylene glycol in the future. Half of the refining capacity is slated for exports. The refinery may also hold the distinction of using only heavy high sulphur crude oil. The total investment in the project (combining both the phases) is scheduled to be close to Rs 21,000 crore. Once the proposal is approved by the board, we can go ahead with the technology contracts.
Soaring crude prices and mounting under-recoveries have exerted financial pressures on IOC. The erosion of profits has made it essential to review the projects.
20-Sep-05 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}