File picture of the project site in Paradip

Paradip, Aug. 18: Delay in the establishment of a captive power plant, insufficient water supply and shortage of skilled manpower have pushed back the commissioning of the Rs 30,000-crore Paradip oil refinery project.

The deadline for the project, which is being set up over 3,000 acres on the outskirts of Paradip port township, has now been rescheduled to November.

“The commissioning has been delayed due to a variety of factors that are beyond our control. The project work is on in full swing. Nearly 95 per cent of the work has been completed. We are trying our best to work fast. Nearly 400 engineers and officers of Indian Oil are working round the clock at the project site. More than 35 refinery construction-related companies and consultants are on the job with their engineers, technicians and workers. Besides, 30,000 labourers of various companies are engaged in the job,” said general manager (human resources), Paradip oil refinery project, W.R. Barbara.

“Power scarcity is a major impediment. The captive power plant being set up here is yet to become fully operational. We hope it gets completed next month. Once the power plant is operational, we will get the required electricity to accelerate the work,” said a company official.

The project has also been hit by insufficient water supply. Work on the 92-km water pipeline from Mahanadi (near Jobra) to the project site is still incomplete. It was delayed by court proceedings regarding the drawing of water.

“Shortage of skilled manpower has also delayed the project. The consultant companies have engaged about 30,000 skilled labourers at the project site. Yet, there is a shortage of about 10,000. The problem is that skilled labourers are hard to find in the state. Efforts are on meet the shortfall,” said another official.

Dredging and reclamation of marshy land and erratic transportation of raw materials also contributed to the delay.

Delay in getting environment and forest clearance for the south jetty and pipeline spread-out work, impediment in equipment and bulk supplies also posed bottlenecks.

The 15-million-tonne-per-annum project is designed to operate on a broad basket of crude oils, including cheaper, high sulphur and heavy grades and is configured to perform with high energy efficiency.