Indian Oil Corporation has reiterated its commitment to the Paradip refinery project in Orissa. It has even proposed to scale up the envisaged capacity and develop the project as an integrated refinery-cum-petrochemical complex, on the lines of the Panipat refinery in Haryana.

The project now envisages refining capacity of 15 million tpa along with a petrochemical complex. The detailed feasibility report has been commissioned and is expected to be ready within the next two months. The integrated project, expected to cost Rs.20,000 crore, would come up during 2009-10.

Major petrochemicals likely to be produced at the complex would include purified terephthalic acid (PTA) and paraxylene (PX).

The Paradip refinery project, first proposed in 1998, envisaged a refining capacity of 9 million tpa. The project was delayed on account of several reasons including withdrawal of original co-promoters, Kuwait Oil Corporation and the Hinduja Group, and then due to sales tax concession related issues with the Orissa government.