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Orissa Govt to sign fresh MoU with IOCL

Tuesday, 23 Jul 2013
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The Orissa Government has decided to sign a fresh MoU with Indian Oil Corporation (IOCL), for the petrochemicals complex at Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), in the state.

The fresh MoU to be signed, includes fixed timeline for investment at Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR).

Earlier, the IOCL, which is already behind schedule in building the Paradip refinery project, had given a commitment to set up a downstream petrochemicals complex (DPC), which was supposed to be the anchor tenant for the PCPIR. Work on the project was expected to begin two years after the commissioning of the refinery. IOCL had agreed to develop a poly-propylene unit, an ethylene derivate plant, as well as a mixed feed cracker unit in the proposed PCPIR.

Since the refinery project is already behind schedule, the state government wants a fresh agreement mentioning a fixed deadline for the petro-complex project.

The IOCL, which has been setting up the refinery since 2000, has faced various hurdles including slump in the oil market, land and labour problems, delay in commissioning of the captive power plant and protests over laying of water pipelines from Mahanadi to the plant site. Originally envisaged to be a six million tpa refinery with an investment of Rs 8,300 crore, the capacity was raised to 15 million tpa later. However, the company expected to commission Phase-I of the refinery project by September 2013.

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