The Hindu Business Line : Delay may lead to ‘minor’ rise in IOC’s refinery project cost

Kolkata, Sept. 17 Delay in commissioning capacity expansion project of IndianOil’s Panipat refinery, from 12 million tonnes per annum to 15 mtpa may lead to a “minor” escalation in project cost. The Rs 803-crore project, which was already running behind schedule, has undergone fresh rescheduling in the date of completion to June 2009.

“The refinery expansion project is slightly delayed for synchronising the shutdown period as well as the naphtha disposal mechanism. This may lead to minor escalation in project cost,” an IOC official told Business Line.

Rescheduling

According to the official, fresh date rescheduling has been done to merge the normal maintenance shutdown period with the requisite shutdown for synchronisation of expanded capacity.

The naphtha disposal mechanism of the expanded refining capacity too needs to be synchronised with the upcoming Rs 14,439-crore naphtha cracker and polymer complex at Panipat. The naphtha cracker project, originally slated for completion in December 2008, is now expected to be commissioned in 2009.

“We are preparing a modified plan for completion of the residual work of the refinery capacity expansion project. The plan, including both financial and technical details, is expected to be in place within a month,” the official said.

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