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Indian Oil Corporation Ltd (IOCL) has test run its 15 million tonne per annum (mtpa) crude oil refining facility at Paradip after it received consent to operate order earlier this month from Odisha State Pollution Control Board (OSPCB).
However, the unit will take another 6-8 months for commissioning as it is in the process of operationalising secondary units, which are required for advance refining of products such as liquified petroleum gas (LPG), naphtha, kerosene, gas oil, which come out of crude oil processing.
"Additional refining of petroleum products is profitable. Hence, we want to start the refinery when all units are functional," said a spokesperson for the Paradip refinery project of IOCL.
The unit received Odisha High Court nod on April 16 this year to draw water from Mahanadi river subject to fulfilling certain conditions.
IOCL had signed a memorandum of understanding (MoU) with the state government in February 2004 to set up a 15 million tonne refinery along with a petrochemical complex at Paradip envisaging a total investment of Rs 60,000 crore.
The commissioning of its petro-chemical complex is crucial for establishment of PCPIR (petroleum, chemicals and petrochemicals investment region) hub, which is planned across 284 sq km in Kendrapara and Jagatsinghpur districts and is expected to attract investments to the tune of Rs 2.74 lakh crore.
The Union minister for petroleum and natural gas Dharmendra Pradhan has already inaugurated a polypropylene unit of its proposed petrochemical complex. The refinery unit, which is built at cost of Rs 34,555 crore, has been designed to process broad basket of crude oil including cheaper high sulphur heavy crudes. It is also configured to produce propylene, motor spirit, aviation turbine fuel and high speed diesel (HSD). The products will be dispatched by pipeline, rail and road and through coastal shipments, according to a release issued by the oil marketing company.
