Commissioning of IOCL's Paradip Refinery Pushed Back

---

Researched by Industrial Info Resources India (Delhi, India)--The commissioning of Indian Oil Corporation Limited's (BSE:530965) (IOCL) (New Delhi, India) 300,000-barrel-per-day Paradip Refinery has been delayed almost one year, according to a source with knowledge of the refinery project. The Paradip Refinery is now expected to begin commercial production in June 2013. Previously, the refinery was expected to begin commercial operation in November 2012.

IOCL is facing many problems in the implementation of the project. Reputed vendors like Larsen & Toubro (BSE:500510) (Mumbai), Godrej Group (Mumbai), Bharat Heavy Electricals Limited (BSE:500103) (BHEL) (New Delhi), and PK Tubes (New Delhi) have failed to deliver critical items on time. The major reason is the deteriorating law and order and frequent demonstrations by the locals at the Paradip site. This situation has resulted in en-mass desertion of labor from the site and has created an acute shortage of skilled manpower.

In addition, there have been delays obtaining clearances from the government, such as the right of way for a raw water pipeline from Cuttack, construction of a 33-kilovolt power supply at the raw water intake at Cuttack, and forest clearance for the south jetty and coastal approach road. These delays have slowed the progress of the project. Recently, Paradip Port Trust (PPT) also backed out of construction of the south jetty at the Paradip Port, citing viability concerns.

In addition to crude and vacuum distillation unit, the refinery will have a hydrocracker unit, a delayed coker Unit, a fluid catalytic cracking unit (FCCU), a hydrotreater and other secondary processing facilities. This will be the most modern refinery in India and will meet stringent specifications with minimal residue production.

View Plant Profile - 1038807
View Project Report - 89000157 89001335 89001356 89001357 89001366 89001367 89001382 89001393 89001394 89001406 89001407 89001410 89001411 89001417

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.