IOCL’s Paradip refinery project to achieve full capacity by next fiscal

BHUBANESWAR: The Indian Oil Corporation Ltd (IOCL), which is all set to inaugurate its Rs.35,000 crores oil refinery project at Paradip on February 7 by Prime Minister Narendra Modi, aims to operate the refinery project at full 15 million tonne per annum (mtpa) capacity from next fiscal.

“Most of the units of the Paradeep refinery have been commissioned. All the units of the refinery would be commissioned by January end. The refinery would run with 100 percent capacity by next fiscal,” said IOCL’s director (refineries) Sanjiv Singh.

He said around Rs.35,000 crore have been invested in the 15 mtpa refinery project in Odisha.

, Singh said the refinery would roll out BS-IV compliant products from the day one, and it is also capable of producing BS-VI products.

In a major step towards mitigating environmental concern, the central government has decided that the country will be switching over to BS-VI norms of auto emissions and commensurate quality auto fuels (MS and HSD), directly from BS-IV norms from April 1, 2020.

India’s oil major IOCL is making all-out efforts to meet the deadline, he added.

He said oil PSUs are expected to invest about Rs. 28,750 crore for switching over to BS-VI auto fuels and the Indian petroleum industry is gearing up for full compliance with this direction.

BS-IV and BS-VI auto fuels have far lower sulphur content compared to BS-III levels.

Informing that though the refinery is capable of exporting petroleum products, Singh expected that the entire volume of petroleum products produced at the Paradeep refinery would be consumed domestically.

Replying to a question over the dispute with Odisha government over VAT deferment and other tax benefits, he said since refining is a low margin business as product prices are governed by crude oil prices, the state government has offered 11 years VAT deferment for the refinery project.

He, however, denied any dispute with the government stating that it is a partner in the refinery project.