International BusinessIOCL invests Rs 2,200 cr in Paradeep refinery
Indian Oil Corporation Ltd (IOCL), which is setting up a 15 million tonne per annum refinery at Paradeep, has so far invested Rs 2,200 crore in the project. While the cost of the refinery excluding the petro-chemical complex is estimated at Rs 29,777 crore, IOCL has already committed Rs 4,680 crore, said state industry minister Raghunath Mohanty.
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The state-run oil company signed a rupee term loan agreement for Rs 14,900 crore with a consortium of 21 lenders led by State Bank of India (SBI) to finance the Paradeep project in May this year. Mohanty said, the work on infrastructure development for the proposed refinery has started at the site and land measuring 3344.65 acres has been handed to IOCL authorities. The state government signed a memorandum of understanding (MoU) with IOCL for setting up a refinery at Paradeep in 2004.
Though it was targeted to be completed by 2010, the work has been delayed. In the changing scenario this project is likely to be completed by 2012, he added. He said, 124 families in Ersama block will be displaced due to the project and out of them 64 families have agreed to stay in resettlement colonies.
Apart from the refinery, the Centre proposes to establish a Petroleum, Chemicals and Petro-Chemical Investment Region (PCPIR) complex at Paradeep at an investment of Rs 2,80,000 crore.
Sources said, the construction work for the refinery is expected to start in the first quarter of 2010-11. However, some pre-construction activities like detail engineering, procurement of long lead items and material requisition preparation for other items have already started.