The foundation stone of IOC's oil refinery project in Paradip was laid in 2000 amidst much fanfare. But the project faced trouble due to the refusal of the state government to give tax concession. After the state government agreed for tax concession, a MoU was signed between the state government and the Indian Oil Corporation in February 2004, for establishment of a 9 million ton oil refinery. Subsequently, in November, 2004, IOC decided to increase the production capacity from 9 million metric tpa to 15 million metric tpa along with a petrochemical complex with a total estimated project cost of Rs 20,000 crore to Rs 25,000 crore by 2009-2010. The state government has provided 3,347 acres of land at Paradip for the project and IOC has already spent around Rs 1000 crore on infrastructure development.
The state government is hopeful about commissioning of the proposed oil refinery and petrochemical complex within the specified time frame- by 2008-09.
06-Dec-05 
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