I had written about a delay in Indian Oil Corp’s (IOC) paraxylene (PX), polypropylene (PP) and styrene projects at Paradip because of rising costs and financial constraints.
But a company source tells me that a final decision on the timing of these projects and the refinery will be decided by the end of this month.
One idea is to commission the refinery by March 2012 and complete the PX, PP and styrene projects in 2013. IOC would also look at having just a basic refinery by March 2012 before the expiry of a tax break offered by the government. The more complicated units such as coker and fluid catalytic cracker (FCC) would be completed after a year.
The configuration and cost of the second phase of the project, which includes a cracker and derivative plants, has yet to be firmed up. This phase is likely to come up 2-3 years after the refinery.