Paradip, April 28: A refinery project that holds the key to economic growth in this region continues to face hurdles.

Even though nearly 92 per cent of the construction is complete, the Paradip refinery project of Indian Oil continues to struggle with hurdles such as power shortage. A state government delegation led by chief secretary Bijay Kumar Patnaik yesterday reviewed the construction activities of the refinery project.

Top government officials and company personnel discussed several issues that have resulted in the delayed commissioning of the project. The state administration has promised assistance for smooth execution of the project, said oil company officials.

Paradip refinery project has achieved an overall progress of 91.9 per cent and it is expected that activities will start from September 2013.

“If everything goes according to plan, we are optimistic of meeting the September 2013 deadline for commissioning of the project. The chief secretary, government of Odisha, promised us during yesterday’s meeting to extend full cooperation to the company to clear the project-related hurdles,” executive director, Paradip refinery project, M. Vijaywargiya said.

The 15-million-tonnes-per- annum (MTPA) refinery project is designed to operate on a large basket of crude oils, including cheap, high sulphur and heavy grades and is configured to perform with high energy efficiency.

Apart from meeting the rising domestic demand for cooking gas, petrol, diesel, aviation fuel and other petroleum products in eastern India and beyond, it will produce petrochemical feedstock such as propylene for nearby units, said company officials.

The refinery project has had to encounter several hurdles apart from recurring lawlessness and disruption of work due to trade unionism. Various factors are to blame for the delay. The captive power plant by the state-run Bharat Heavy Electrical Limited (BHEL) is yet to be completed. Supply of power by the state government-controlled companies is not consistent. Besides, the water intake channel system from Mahanadi river to the project site has not been completed. The water channel network work has only been completed on an about 80-km stretch while work is progressing on an 8-km long channel.

Delay in getting environment and forest clearance for the south jetty and pipeline work, problems in acquiring equipment and bulk supplies have also posed problems, said Indian Oil officials.

The work on the 1,100-km Paradip-Ranchi-Raipur pipeline, which has been planned to carry finished products to consumers in Odisha, Jharkhand, Chhattisgarh and Madhya Pradesh, is yet to be completed.

The successful commissioning of the oil refinery project holds the key to economic growth of the region. The district administration has resolved to address the problems faced by the company on a priority basis, said Jagatsinghpur collector Satya Kumar Mallick.