Visa rules eased for IOC Paradip refinery
New Delhi   02-Jul-2010

State-run IndianOil's (IOC) new refinery at Paradip, Orissa, is back on schedule after the ministry of external affairs (MEA) eased its visa restriction for the project.

The country's largest refiner had been lobbying with the government to lift the cap of 20 visas per project as the restric- tion threatened to delay the commissioning of its Paradip refinery.

"The issue has been resolved. A circular has been issued by the MEA. The project will be back on schedule," said B.N. Bankapur, director of refineries at IOC.

Mint had reported on 3 May about the restrictions and the resultant delays. IOC needs a number of overseas experts for setting up the refinery, with a capacity of 15 million tonnes per annum (mtpa), at a cost of Rs29,777 crore. The crude dis- tillation unit of the project is slated to be commissioned by March 2012, and the overall project by November that year.

IOC said the visa restriction would have severely affected its Paradip project as the UK's Foster Wheeler Ltd is its main consultant for it. The process licensors, contractors and equipment suppliers are also from overseas.

IOC was lobbying with the petroleum ministry to impress upon MEA for lifting the re- striction for the refinery, which would help it meet new fuel emission standards, process more low-quality crude and tap export markets in South- East Asia.

In a 14 June communication to the petroleum ministry, IOC said, "The problem is resolved to a large extent. All the visas applied after 15 May have been cleared immediately."

The visa cap is hurting the power sector. Though the number of work visas allowed per electricity generation proj- ect has been doubled to 40, a shortage of Chinese workers is stalling the construction of some power plants.

Analysts say timely delivery of energy and infrastructure projects requires efficient access to a global workforce.

"The challenge in this con- text will always be to ensure that a policy of secure borders and open doors does not be- come a contradiction on the ground," said Monish Chatrath, executive director at consultancy firm Mazars India.

IOC has an installed capacity of 60.2 mtpa from 10 refineries. India has emerged as a major Asian refining hub, with an installed capacity of 177.97 mtpa through 19 refineries.