The Hindu Business Line : IOC to seek nod for Paradip refinery project next month

THE jinxed Paradip refinery-cum-petrochemicals project proposal, which had faced scrutiny time and again, may be placed for approval before the Indian Oil board in October or November.

IOC has already prepared a detailed feasibility report (DFR) on the project.

Sources in Indian Oil told Business Line on Saturday that the company has already finalised the DFR and the proposal would be placed before the project evaluation committee in October, following which Indian Oil would seek the approval of its board of directors for investment in the project.

Though declining to comment whether the project could get the board's approval, a senior level IOC official said the company had not shelved any proposal so far.

"In all fairness, given the financial constraint we are in owing to soaring crude prices and mounting under-recoveries, we are reviewing every project before we go ahead with it," the sources said.

"Once the proposal is approved by the board, we can go ahead with the technology contracts."

According to the DFR, the company would propose commissioning of the 15-million tonne refinery using fluid catalytic cracking route, in the first phase, to produce polypropylene and polystyrene and back it up with a naphtha cracker plant, in the second phase, to produce a wider range of products including mono ethylene glycol in the future.

Half of the refining capacity is scheduled to be used for exports. The refinery may also hold the distinction of using only heavy high sulphur crude oil.

The total investment in the project (combining both the phases) is scheduled to be close to Rs 21,000 crore.

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