The Hindu Business Line : Kochi Refineries project may be delayed due to high price bids

THE high price quoted by bidders in response to the global tender floated by Kochi Refineries Ltd for setting up the Rs 623-crore crude oil receipt facilities here has forced the company to go for alternate methods to implement the project. This, in turn, is likely to delay the project.

Admitting that "there can be a delay," Mr B.K. Menon, Managing Director, told Business Line on Saturday that the price quoted by the bidders, an Australian and an Indian company, was over 40 per cent more than the estimated cost of the project. Therefore, "we are going to set up the project through alternate methods such as works contract or the conventional methods." As a result, implementation of the project could be delayed now, he said.

Mr Menon said in order to reduce the cost, the company had decided to set up the crude oil receipt facilities consisting of a single buoy mooring, a shore tank farm and connected pipelines at Puthuvypeen near here. After obtaining the required clearances, global bids were called for and the completion of the project was scheduled for July 2006, he said.

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