Paradip, April 20: Commissioning of the Indian Oil Corporation’s ambitious oil refinery project here has got delayed further, causing a cost escalation.

The project’s deadline has now been rescheduled to November against the earlier cut-off date of September.

“For factors beyond our control, the project has got delayed further. Indian Oil is not in a position to meet the September deadline. The project is fast progressing. We are very optimistic that the refinery will be fully commissioned by November,” said deputy general manager (human resources), Paradip oil refinery, Nirad Kumar Das.

The delay had led to cost escalation. Earlier, the project was worth Rs 29,000 crore. But now, it is being revised to Rs 30,500 crore, said an official. Various factors contributed to the delay.

The captive power plant by the Odisha-run Bharat Heavy Electrical Limited is yet to get completed. Besides, the water intake channel system from the Mahanadi river to the project site is also not complete. Recurring labour unrest and lawlessness in and around the project site have also hindered the project’s progress.

The captive power plant is in advanced stage of completion. Besides, the water channel work is complete in about 80km stretch. Work is progressing on the 8km-long channel, Das said.

Daily engagement of labour force at the project construction site is about 40,000 now. Nearly 10,000 skilled personnel from civil, chemical and engineering wing have been recruited to speed up the project work. If required, the manpower will be increased further in coming days, said another company official.

“About 90 per cent of the project work have been complete. We have deployed additional labour force on contractual payroll to speed up the work,” the official said.