Bhubaneswar, Jan 19 (IANS) The Indian Oil Corporation Ltd (IOCL), which is all set to inaugurate its Rs.35,000 crore oil refinery project at Paradip early February, aims to operate the refinery project at full 15 million tonnne per annum (mmtpa) capacity from next fiscal.
“Most of the units of the Paradeep refinery have been commissioned. All the units of the refinery would be commissioned by January end. The refinery would run with 100 percent capacity by next fiscal,” said IOCL’s director, refineries, Sanjiv Singh.
He said around Rs.35,000 crore have been invested for the 15mmtpa refinery project in Odisha.
Prime Minister Narendra Modi is scheduled to inaugurate the refinery project on February 7.
Noting the refinery would roll out BS-IV compliant products from the commissioning of the project, Singh said it is also capable of producing BS-VI products.
In a major step towards mitigating environmental concern, the central government has decided that the country will be switching over to BS-VI norms of auto emissions and commensurate quality auto fuels (MS and HSD), directly from BS-IV norms from April 1, 2020.
India’s oil major IOCL is making all-out efforts to meet the deadline, he added.
He said oil PSUs are expected to invest about Rs. 28,750 crore for switching over to BS-VI auto fuels and the Indian petroleum industry is gearing up for full compliance on this direction.
BS-IV and BS-VI auto fuels have far lower sulphur content compared to BS-III levels.
Informing that though the refinery is capable of exporting petroleum products, Singh expected that the entire volume of petroleum products produced at the Paradeep refinery would be consumed domestically.
He said the refinery is designed to process 100 percent high-sulphur, including 40 percent heavy crude oil of low-cost, to produce various petroleum products like petrol, diesel, kerosene, aviation turbine fuel, propylene, sulphur and petroleum coke.
Speaking on the polypropylene complex, Singh said work has already taken off and it is poised for commissioning by the end of 2017.
It is among the most advanced refineries in the world and will serve as a catalyst for energising the industrial and economic development of the entire region and the State in the long run, he added.
He said the refinery has unique INDMAX (Indane Maximization) technology with 4.17 million tonne capacity capable of delivering up to 44 percent LPG.
Reacting over dispute with Odisha government over VAT deferment and other tax benefits, he said since refining is a low margin business as product prices are governed by crude oil prices, the state government has offered 11 years VAT deferment for the refinery project.
He, however, denied any dispute with the government stating that it is a partner in the refinery project.
The state would incur revenue loss to the tune of Rs.1,500-2,000 crore due to VAT deferment, said sources.