The Indian Oil Corporation (IOC) is likely to start the construction work on the proposed 15 million tpa refinery at Paradip in Orissa by the first quarter of 2010-11.

Currently, activities like detail engineering, procurement of long lead items and material requisition preparation for other items is on. The plant construction is expected to follow the completion of the part design or part engineering so that civil contractors can be awarded the jobs for piling and equipment foundation.

Moreover, to expedite the construction work of the project, a roll on or roll off jetty is being constructed with assistance from the Paradip Port Trust. The jetty is likely to be ready by August 2009. For the movement of heavy equipment, a 15 mtrs wide and seven km long coastal approach road to the refinery site is being built and it is expected to be ready by December 2009.

Besides, for the import of crude through sea route, one new oil jetty is likely to be constructed at the southern dock complex of Paradip port. Basic engineering has been completed and the approval of the Union Government is awaited for the same.

In May 2009, IOC signed loan agreement for Rs 14,900 crore with a consortium of 21 lenders led by State Bank of India to finance the Paradip project. While the cost of the refinery excluding the petro-chemical complex is estimated at Rs 29,777 crore, IOC has already committed Rs 4,680 crore for the project. So far, it has invested Rs 1,600 crore in the project.

Also See:

IOC mops up funds for Paradip project (15-May-09)

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