IOC’s DHDT project delayed
Kolkata   25-Aug-2010

For IndianOil (IOC), things seem to be going the other way at its diesel hydrotreatment project (DHDT) in the Bongaigaon refinery. Expected to be commissioned by June 2009, the commissioning of its 1,676-crore project has been delayed yet again, from September to October 2010. However, the critical part of the project - the captive power plant - is now scheduled to be completed in December 2010 which may hold up the project.

The project is envisaged to improve the quality of high speed diesel (HSD) to conform to Euro-III equivalent norms. The commissioning of the power plant by BHEL has also been delayed and is expected to be commissioned only by December 2010, which is a good 18 months beyond the original completion schedule of June 2009. As of July 2010, the project had achieved an overall physical progress of 93.55%, against a target of 100%.

According to an IOC official, civil works for utilities and offsites, delayed by 23 months, are expected to be completed this month. Electrical and instrumentation works that had an original deadline of July 2009, will be completed by August 2010. Completion of water works, which has also been delayed by 18 months, will be completed by end of August 2010.

Project hurdles include scarce technical resource availability in the region and poor pace of construction activities in the prevailing local environment. There has been a 90-day bandh since commencement of the DHDT project. These bandhs and various road blockades from time to time have severely affected the movement of materials and machinery. There have been incidents of kidnapping which have brought down the morale of the people. Under these adverse conditions and constraints, IOC has taken several steps to expedite the progress.