PARADIP: Prime Minister Narendra Modi on Sunday dedicated the 15 MMTPA refinery of Indian Oil Corporation Ltd (IOCL) at Odisha’s Paradip to the nation.
The Rs 34,555 crore project will primarily produce BS-IV fuels and serve the eastern and south-eastern markets apart from exports.
The refinery is the largest on the country’s Eastern coast and is equipped with the latest technology, including IOCL’s own patented IndMax technology for better and higher LPG output.
The commissioning of the refinery comes after 14 years, owing to many flip-flops by the Naveen Patnaik government on incentives, withdrawal of its foreign partner Kuwait Petroleum and frequent stiff opposition from locals, state politicians and NGOs apart from two killer cyclones.
The Rs. 34,555-crore project, which had incurred a cost overrun of over Rs. 3,500 crore due to delays, is spread over 3,350 acre area adjoining the Paradip Port.
Birthing of Paradip Refinery
- July 1992: Union government decides to set up the refinery in a joint venture (JV)
- Aug 1995: The government approves selection of Kuwait Petroleum (KPC) as JV partner
- July 1998: Approval was given for 9-mmtpa refinery project in JV with KPC
- Dec 1998: Odisha government agrees to give incentives for the project
- Aug 1999: IOC decides to set up refinery on its own due to uncertainty in venture with KPC
- Jan 2000: KPC withdraws from the project
- May 2000: Then prime minister Atal Bihari Vajpayee lays the foundation stone for the refinery at Paradip
- Feb 2002: Project put off due to withdrawal of incentives by Naveen Patnaik-led Odisha government
- Feb 2004: The Odisha government restores incentives by signing a memorandum of understanding with IOC
- Mar 2006: Project gets in-principle approval with revised configuration
- Feb 2009: Final investment approval given