Cuttack, Sept. 28: Trouble for the Indian Oil Corporation Limited (IOCL) intensified today with an agency, engaged by it for construction of its water intake system on the Mahanadi river, expressing its desire to pull out of the project.
The agency, Lanco Infratech Limited, has moved a petition to this effect in Orissa High Court.
Lanco Infrastructure Limited, the Haryana-based firm, was carrying out construction for the intake well. It was also laying pipelines in Cuttack for the IOCL’s refinery-cum petrochemical complex in Paradip. Construction work of the intake system had stopped since July 30.
The high court had imposed restrictions on it on July 29 in an interim order on a PIL.
Moving the petition, Lanco counsel S.K. Padhi has pointed out to the court that machines and raw materials were lying idle at the site. “Because of the interim order, Lanco is not moving out machines and materials which are worth crores of rupees. High-end machines are also regularly stolen. Further, considering the climate condition, the materials and equipment run the risk of getting rusted and wasted causing huge losses,” the Lanco counsel said.
“Lanco is facing severe losses as the expensive machineries are lying idle and wages are being paid for watch and ward charges,” Padhi further said, while pleading for being allowed “to lift the construction materials and equipment to use them atsome other sites and places”.
Taking note of it, the two-judge bench of Justice B.P. Das and Justice M.M. Das directed the state government to submit a status report on Lanco’s claim for an order on the petition tomorrow.
As water is one of the main utilities and essential for commissioning of the Rs 29,777-crore Paradip refinery project, the IOCL had earlier filed a petition for lifting of the restrictions. “The intake system is required to be completed and commissioned by September 2011 so as to carry out trial running and commissioning in next two months to be in readiness to supply water to the refinery project by November 2011,” IOCL had pleaded.
