IOC Paradip Refinery Project Runs up Huge Costs Due to Delays

摘要

Indian Oil's Project Evaluation Committee has been called upon to review the performance of the ￡ 29,777 crore Paradip Refinery project. The board has sought a detailed analysis of each item of cost escalation. The Committee has alsobeen asked to suggest steps to improve the project's Internal Rate of Return (IRR).Sensing further delays on the project, the PMC major, EIL has already proclaimed that the project will not be commissioned before January, 2013, which istwo months over the original schedule of November, 2012. Sources say that commissioning of the Crude Distillation Unit (CDU) under Phase-I of the project is likely to be delayed by four months and is now expected to be commissioned by July 2012 only, asagainst the earlier timeline of March 2012. They confirm that the project is now staring at hefty cost overruns too due to escalation in cost of various items. This is likely to have a negative impact on the project's IRR.