IOCL Paradip Refinery

State-run engineering firm BHEL has bagged an order worth Rs 400 crore for setting up a sulphur recovery unit at Indian Oil's Paradip Refinery in Odisha. "Against stiff international competitive bidding (ICB), Bharat Heavy Electricals Limited (BHEL) has bagged a major order for a sulphur recovery unit from IOCL (Indian Oil Corporation Ltd)", a BHEL statement said. With this order, BHEL has made an entry into the downstream oil & gas process package business. According to statement, the package, valued at over Rs 400 crore, envisages setting up a 525 TPD (tonne per day) sulphur recovery unit at IOCL's Paradip Refinery in Odisha. Notably, the company's diversification strategy into non-coal based business areas has begun paying dividends and this is a milestone order for BHEL as part of its new growth areas initiative. With the execution of this order, BHEL will establish itself as an LSTK (lump sum turn key) player for process packages in the downstream oil & gas sector. BHEL's

The two firms have, however, hired capacity in Adani's under-construction LNG import terminal at Dhamra.

Company foresees no problem on availability of crude, will get it from other suppliers; Paradip refinery currently imports from US, Nigeria, UAE, Saudi and Iran

The final testing on the pipeline's commissioning is in full swing

Development puts a spanner in Odisha's efforts to draw investments in downstream space for the Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) hub around Paradip

The plan to defer the turnaround at Paradip is aimed at helping the company meet govt-set crude processing targets

Odisha government has agreed to give Rs 700 crore per annum of an interest-free loan for 15 years

Sources said state govt also agreed to waive interest/penalty for the VAT withheld by IOC

Oil minister Dharmendra Pradhan has suggested that both Indian Oil Corporation Ltd (IOCL) and the Odisha government need to soften their demands to break the deadlock over award of fiscal incentives to the oil company's Paradip crude oil refinery.At a meeting with chief minister Naveen Patnaik in New Delhi, Pradhan, the Union minister for petroleum & natural gas, emphasized on the need for finding a middle path, wherein both IOCL and the state government can work out a mutual acceptable solution by climbing down from their stated positions. Pradhan felt that though the state had extended the tax concession in 2004, there was a necessity of finding an amicable solution to the present impasse keeping in view the fiscal health of the state and commercial interest of IOCL. The minister said it was important for the state government to incentivize the expansion plans of IOCL to create petrochemical and downstream industries in the state. "Over a period of time, it will enable the ...

By far, Paradip oil refinery of Indian Oil Corporation (IOCL) is the biggest gainer of state sponsored financial incentives among all the newly constructed oil refineries enjoying tax sops given by the respective states of their location.According to a study done by the Odisha government, which is revisiting the tax sops to Paradip oil refinery, the sales tax deferment allowed by the state to the IOCL project would block collection of Rs 2000 crore revenue from the sale of products of the refinery for 11 years from the date of commissioning of the project in 2016.Compare this with the financial incentives given by other states to some of the recently constructed refineries under public sector and joint sector companies.Sources said, the six million tonnes per annum (MTPA) capacity refinery of Bharat Oman Refineries Limited (BORL), a joint venture company of Bharat Petroleum Corporation Limited (BPCL) and Oman Oil Company S.A.O.C. of Oman, at Bina in Madhya Pradesh, which went on ...