Paradip, Jan. 21: Work at the Paradip oil refinery project site resumed today with oil company officials reaching a negotiated settlement with the aggrieved labourers.

At least 25 persons, including security personnel, were injured on Saturday at the project site near Paradip as the death of a labourer under “mysterious” circumstances took a violent turn.

“The company held talks with the villagers and representatives of the trade unions. The talks have yielded the desired result. Paying heed to the protesters’ demand, Indian Oil Corporation Limited (IOCL) will disburse Rs 6.5 lakh as compensation to the deceased’s family. One of the family members of the deceased will be engaged as a contractual labourer as was demanded by the agitators. The trade union representatives sought disciplinary action against CISF personnel for using force against people. The matter has been referred to the CISF authorities,” said deputy manager (corporate communications), IOCL, Sangram Mishra.

Order has been restored at the site, he said. Last year, a series of violent incidents had been reported in and around the refinery complex. The majority of these disturbances were attributed to simmering trade union rivalry.

The recurring lawlessness has hindered the smooth of progress of the oil refinery project. But, this has been curtailed since the past three to four months. Despite periodic hurdles, the integrated crude oil handling facilities at the Paradip oil refinery will take off by September as against the scheduled commissioning by June 2012, said a company official.

The successful commissioning of the ambitious Rs 2.74 lakh crore worth petroleum, chemicals and petrochemicals investment regions project holds the key to the economic growth of the region. The state government is intent on clearing the project’s hurdles, said a revenue official.

As against approved allocation of Rs 30,000 crore for the refinery project, Rs 29,309 crore has been put to use till date.