I was under the impression that there are no major hurdles to Indian Oil Corp’s (IOC) refinery and petrochemical project at Paradip. But I came across this news yesterday that the viability of the project is in question following the government’s decision to withdraw a tax holiday from 1 April 2009.
The project has been in planning since 2001. But given the progress that IOC has made since then it looked like it would be completed in the next five years. But the latest hurdle could once again result in a delay and also derail the plan for a petrochemical hub at the site.
But IOC’s chairman is talking to the government to restore the fiscal incentive and maybe common sense will prevail.
Meanwhile, IOC is firming up its plan for a paraxylene (PX) plant at Haldia, reports ICIS news. Environmental clearance has yet to be secured for the plant which would have a capacity of 610,000 tonnes/year. A start-up date has also not been set.