The Hindu Business Line : Strike ends: Mooring project commissioning may be delayed

Even though the 19-day strike by the workers at its Single Point Mooring project ended on Friday, the BPCL-KRL (Bharat Petroleum Corporation Ltd-Kochi Refineries Ltd) management is apprehensive of a possible delay in commissioning it on time.

The strike would lead to a total loss of around Rs 150 crore, because of cost and time escalation. In fact, during the past one year 12 times the work was disrupted due to such strikes, Mr E. Nandakumar, General Manager-Projects, told Business Line.

"We were expecting to commission the project by May this year. But, because of the strikes we have lost a good portion of the fair weather conditions," he pointed out.

Now it is unlikely that the company would be able to complete the remaining 30 per cent of the work before the onset of monsoon in June. Given the past experience, it is also not certain that there would not be any disruptions in the coming days also.

According to him, the Government had assured police protection for those willing to work.

But, considering the nature of the project and on a vast area that proposition turned out to be a practically impossible measure, he said. In fact, the contractors have abstained for fear of attacks from the workers. The Government needs to call the trade union leaders and take an assurance from the 700 to 800 workers that they would not disrupt the work. "We are concerned only with the timely completion and commissioning of the project rather than the cost," Mr Nandakumar said.

Vital for crude transport

The SPM project has become inevitable for the refineries to reduce the cost on transportation of crude especially at a time when Kochi Refineries Ltd (KRL) is expanding its capacity from the present 7.5 million tonnes per annum (MTPA) to 9.5 MTPA, he said.

The approved cost of the project is around Rs 623 crore (December 2002 basis). It was initially envisaged for implementation on a lump sum turnkey basis and global tenders were floated in mid 2004 for two packages accordingly. As the cost based on the lowest bids was very much in excess of the estimated cost, it was decided to implement the project on a conventional (engineering and procurement by owner and erection by contractor) basis. Once completed, Kochi Refinereis is expected to make a net saving of over Rs 70 crore.

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