IOCL seeks state support to expedite Paradeep refinery project

The Indian Oil Corporation Ltd (IOCL), the state owned oil marketing company, today sought the support of the Orissa government to expedite work on its 15 million tonne per annum refinery at Paradeep.

The support included widening a 10 km long road linking the project site to Paradeep port for movement of machineries along with the signing of the lease agreement for a patch of government land within the project site. These issues were raised by the IOC chairman Sarthak Behuria during his discussion with the chief minister Naveen Patnaik today.

Talking to the media after meeting the chief minister, Behuria said, the project would be implemented in two phase. While the refinery would be put up in the first phase, the second phase work involved setting up of a petro-chemical complex.

The construction work of the refinery is going on and the order for equipments has been placed. About Rs 6000 crore has been spent by the company on the project which is likely to be commissioned by March 2012.

Further, a 3 million tonne per annum product pipeline would be set up by the company for the evacuation of products from Paradip refinery and their uninterrupted supply to major parts of Orissa, Chhattisgarh and Jharkhand.

This project consists of laying of 1108 km long product pipeline with intermediate pumping stations at Jatni and Sambalpur and delivery stations at Jatni, Jharsuguda, Ranchi and Raipur.

However, in the absence of signing the lease agreement between the company and the Jagatsinghpur district administration for a portion of the land (300 acres) required for Paradeep refinery, the funding of the project couldn’t be frozen. The chief minister has assured to expedite these matters, Behuria said.

Sources said, a patch of government land required for widening the road linking Paradeep port with the project site is yet to be freed from encroachment.

On company’s initiative, the IOC chief said, the company is penetrating to the rural areas and plans to spend about Rs 2000 crore for marketing initiatives. As part of that strategy, 103 dealers are being appointed in rural areas of Orissa under Rajiv Gandhi LPG Scheme.

During the meeting with Behuria, the chief minister expressed his concern about the LPG position of the state, sources added.