The under-construction IOCL plant in Paradip. Telegraph picture

Paradip, Sept. 3: Commissioning of the Indian Oil Corporation Limited’s Rs 29,777-crore oil refinery project here may be delayed by about 10 months. Instead of being commissioned in November this year, the project may start functioning from September 2013.

An official source, however, said that the progress of the project work was satisfactory after labour issues were sorted out.

“We have already completed 85.2 per cent of the work and are making efforts to complete the remaining by September 2013. Earlier, our target for completion of the project was June 2013,” said an official of the project.

“The 15-million-tonne-per-annum refinery project is designed to operate on a broad basket of crude oils, including cheaper, high sulphur and heavy grades. It has been configured to perform with high energy efficiency,” said M. Vijaywargiya, executive director of the Paradip refinery project.

Former Prime Minister Atal Behari Vajpayee laid the project’s foundation stone in 2001. Ever since, it has witnessed tardy progress. In its report to the Union petroleum and natural gas ministry, Indian Oil officials have listed the reasons for the delay.

Non-availability of the required land along the coast for laying underground pipelines was cited as one of the principal factors that delayed the project. Pipelines were to be spread out from the jetty to the project site. However, the land required for the project, which falls in Sandhakuda area, is still under unauthorised occupation of slum-dwellers.

Delayed construction of a power plant and a road has further hindered the project’s progress. Also, the Union ministry of environment and forests has not accorded clearance to the south jetty.

Apart from these factors, law and order situation and labour unrest had been major impediments in the progress of the work, said an official of the Indian Oil.

Work at the site had stopped for two weeks following a clash on July 2. The incident had left 10 persons, including two Central Industrial Security Force (CISF) jawans, injured. The CISF personnel had to open fire to bring the situation under control.

The Indian Oil authorities had met the Odisha chief secretary allegedly to express their displeasure over recurring incidents of lawlessness at the project site. The have also allegedly cited lack of co-operation from the Odisha government to curb the trend.

“Successful commissioning of the oil refinery project holds the key to the economic growth of the region. The Odisha government is determined to facilitate smooth work at the project site. Eviction of slum dwellers from Sandhakuda will be carried out shortly to help the Indian Oil authorities to lay underground pipelines,” said additional district magistrate of Paradip Surajit Das.