The commissioning of the Rs 30,000-crore Paradip refinery project of IndianOil may be delayed.

Slated to be on stream in phases between March and July 2012, commissioning of the 15-million-tonne refinery is running “a couple of months,” behind the schedule, according to sources.

Senor IOC officials, however, feel that the final picture on the progress of the project commissioning will emerge after the monsoon in September and October.

“There is some delay especially in completion of peripheral projects. However, it is still possible to commission the refinery on time,” an official said, adding that the progress of the work during an otherwise “difficult” rainy season would hold the key to timely project completion.

Located at coastal Orissa, Paradip receives heavy rainfall, which is generally not conducive for carrying out construction work.

Reasons for delay

While detailed reasons behind the delay are not available, sources point out labour related issues and delay in commissioning of the captive power plant and laying water pipelines as major hurdles to complete the project on time.

Public sector power equipment manufacturer BHEL is setting up the Rs 3,348-crore, 376 MW gas turbine-based combined-cycle power plant on turnkey basis. When contacted BHEL sources, however, did not confirm any delay.

While official comments were not available from IndianOil, the company's Chairman and Managing Director, Mr R.S. Butola, was reported to have told media persons in Bhubneswar last week that the project was expected to be commissioned on time. IOC claimed to have already invested over Rs 8,000 crore in the project being set up on over 3,000 acres.

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