IndianOil sets fresh deadline for Paradip refinery project
New Delhi   09-Jun-2012

The IndianOil plans to commission its R30,000-crore Paradip refinery project by mid-2013. The refinery was slated to get commissioned by March 2012, but labour issues and other hurdles put a spanner. The plant will have a refining capacity of around 15 million tonne.

“We had set an ambitious target for the project and due to some hurdles like labour issues and laying of pipelines, we have missed the deadline. We will be able to commission the refinery by mid-2013,” said a senior IndianOil official, on condition of anonymity. The tax holiday that the company was enjoying came to an end on March 31, 2012. The petroleum ministry and the company sought an extension of two years, but it was declined by the finance ministry.

Refineries commissioned after March 31, 2012, will not be eligible for exemption from payment of income tax on revenues earned in the first seven years of operations. The lack of tax benefit will impact IndianOil by R300 crore annually. IndianOil also plans to set up another refinery at West coast, with a capacity of 15 million tonne. The total cost of the project will be R30, 000 crore. The company owns and operates 10 refineries out of India's 20 with a combined capacity of 65.7 million metric tonne per annum, according to the company's website.