Following is an excerpt from a report in sify.com.

Thinning refining margin and a global crisis notwithstanding, Indian Oil will stick to its plans to set up the proposed 15-million-tonnes Paradip refinery. The company is optimistic about completing the project at a cost lower than the estimated Rs 30,000 crore.

… “The sharp meltdown in commodity prices as well as the depression should bring down the project cost net of a devalued rupee. Thankfully enough, we are rightly poised to grab the opportunity,” a source said.

…IOC is currently in the process of awarding the PMC (project management contractor) contract. “We have started receiving quotes lower than our expectation. The trend may only get stronger six to nine months later when the actual project tendering will begin,” a source said.

“This project was planned on a long-term perspective and I see no reason to rework on it,” the IOC Chairman, Sarthak Behuria, told Business Line. He, however, did not clarify whether the project would achieve financial closure by next month as was scheduled previously.

IOC has finalised the loan and equity components for the project. Initial agreement was reached with the identified lending agencies on cost of borrowings. The loan agreements are slated to be firmed up in November.

Following is from a report in steelguru.

TATA Power Company & Indian Oil Corporation have decided to float a new company for jointly developing a 1,000 MW coal based power project at Paradip in Orissa. The shareholding pattern of the JV would be 74-26 for TPC and IOC, respectively.

As per report, the proposed project is essentially being set up as a captive project to meet the power requirements of IOC’s 15 million tonnes per annum integrated refinery cum petrochemicals complex at Paradip. The plant may also supply power to the proposed steel plant of the TATA group in Orissa as also other industries in and around the Paradip complex.

Under the JV agreement, Indian Oil is committed to source at least 51% power and the surplus generation can be traded by the JV company. The authorized share capital of JVC will be INR.1,200 crore and the capital will be increased to meet the requirement of further investment as and when called for.

Based on a feasibility study carried out by TPC & IOC the tariff for power supply to the Paradip complex has been estimated on annual levelised basis for 25 years operation at INR 2.46 per unit. The levelised power tariff on similar basis for captive generation within Paradip complex has also been assessed jointly with Foster Wheeler which indicates a significantly higher value of over INR 5 per unit.

Following is an excerpt from a report in Times of India.

Venezuela’s national oil company PdVSA is in talks with IndianOil Corporation for taking up to 49% stake in a 15 million tonne refinery the flagship Indian refiner-marketer is building in Orissa’s Paradip at an investment of a little under Rs 30,000 crore.

“We have received interest from PdVSA. We are evaluating the offer,” a senior company executive, requsting anonymity, said on the sidelines of the 19th World Petroleum Congress here. “We want a partner not for money but for some value. In this case, PdVSA has said it can supply Venezuelan crude to the refinery. IndianOil would look at getting at least half, or 7.5 million tonnes, of Paradip refinery’s crude requirement from Venezuela.”
…

there are other factors that could work for the PdVSA deal. Venezuelan crude is one of the toughest to process and needs refineries with high complexity ratings. IndianOil has designed the Paradip unit to accept the toughest, heaviest and the dirtiest crudes. “Our refinery will have a Nelson Complexity Index of 15,” the IndianOil executive said. Reliance Petroleum’s upcoming export refinery at Jamnagar, which is billed the most advanced, is rated at 14. Besides, India offers strategic locational advantage from where exports can even happen to as far as the US.

Following is an excerpt from a report in Pioneer.

Indian Oil Corporation (IOL)’s Chairman S. Beuria called on Chief Minister Naveen Patnaik on Saturday at Orissa Bhawan in New Delhi and appraised him about the progress on 15 MMTPA Paradip- refinery -cum- aromatic complex.

He indicated that approximately Rs 1,254 crore had already been spent on the project.

“Due to cost and time overruns, the project cost is likely to go up to Rs 46,000 crore and the project will take 42 months to get completed,” he said.

He further indicated that they have already received environmental clearance from the Union Ministry of Environment and Forest. Construction of water and power supply system has also been completed. The work of dredging and reclamation of land is under progress.

Beuria informed Patnaik that the seven year- holiday available under Section 51-B will be withdrawn effective from April 1, 2009 It would affect the viability of the project.

… Patnaik asked the Beuria to take up the peripheral development works for the benefit of the project affected people of Jagatsinghpur district.

Odisha.in reports that IOC will set up a Biodiesel refinery in Orissa. Following is an excerpt from an Odisha.in  news item on this.

The Indian Oil Corporation (IOC) Thursday announced to set up a Bio-Diesel Oil Refinery in Orissa.

This was announced by B.B.Choudhury, chief of IOC, Eastern Zone at the Banker’s Committee meeting on rising of energy plantation and Bio-Diesel production being organised jointly by OREDA and Science and Technology Department, Orissa.

Choudhury said that IOC had plans to support all necessary infrastructures for sustainable and qualitative production of Bio-Diesel.

He said that IOC would set up the proposed Bio-fuel processing unit in a centrally located area and urged the state government to help supply high yielding non-edible Jatropha or Karanja seeds of at least 2 lakh Metric tones annually to make the unit viable.

IOC has decided to blend Petrol and Diesel with ethanol content in rational level ,he said .presiding over the meeting Orissa Chief Secretary, Ajit Tripathy announced that a Bio-Diesel Park would be set up at Deras , in the outskirts of Bhubaneswar.

Following are excerpts from a sify.com report.

State-owned Indian Oil Corporation (IOC) is setting up an oil refinery-cum-petrochemical complex at Paradip in Orissa, with an installed capacity of 15 million metric tonnes per annum (MMTPA) at an estimated cost of Rs 25,646 crore.

”The project is expected to be completed by October 2011,” Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply to the Lok Sabha.

He said the land acquisition was carried out by Orissa Government by consent agreement under section 11(2) of the Land Acquisition Act, based on the compensation package for private land fixed by Orissa Government in October, 1999.

IOC has already acquired 3,347 acres of land for Paradip Refinery Project.

The progress made on the various phases of the project includes the construction of bridges over Santra Creek, approach road including railway over-bridge for the refinery connecting NH-5A to refinery site have been completed.

Tecnological selection for all major units has been completed.

Residential accommodation for construction phase, CISF colony, coastal approach road and green belt development are under various stages of construction.

Project Management Consultant (PMC) has been selected for Front End Engineering and Design (FEED) phase of the project on December 1, 2006.

Patel said the environmental clearance for the project has been received on July 6, 2007.

He added an amount of Rs 2281.87 crore has been sanctioned for Paradip Refinery project for carrying out pre-project activities, out of which, Rs 778.32 crore has been spent as on July 31, this year.

Business Standard in a report mentions the following numbers in regards to IOC’s plan in Paradip.

IOC is also planning around Rs 6,000 crore petrochemical complex at its upcoming 15 mtpa refinery in Paradip, Orissa.

Following is somewhat of a dated collection on investments and investment plans in Orissa.

• Summary: [1], [2], [3:Interview with CM]
• New jobs: [1.5 lakhs new jobs]
• Directorate of Industries, Govt. of Orissa
• Education and Education related financing
  • Loans and insurance for college education:
    • a great Andhra bank scheme
    • An educational loan portal
    • Another educational loan portal
    • Yet another educational loan portal
    • A rediff article with pointers
  • Higher Education: [FinExp-Aug05]
  • Primary and Secondary Education: [Insurance-plan-Aug15-05], [Insurance-plan]
    Editor’s comment, Aug 14, 2005: The private engineering colleges and medical colleges should be encouraged to open one or more Class I-XII schools. In general, these private colleges should spend 10% on the above, 80% on their own stuff, and another 10% on post-graduate education. For the 10% parts they can either have their own ClassI-XII school and M.Tech/Phd Program or pay the amount to an appropriate fund.
    Editor’s comment, Aug 14, 2005: For Oriya medium students to compete well in national and international level exams and competitions, after class 7 one should have the option of pursuing science and social science either in English or Oriya. To overcome the worry that students will lose touch with Oriya by pursuing science and social science in English, from Class 7, Oriya should be split to two parts, and be assigned twice its current weightage. I.e., instead of 100 marks for Oriya, there will be 200 marks for Oriya. The two parts could be (i) grammar and vocabulary — similar to TOEFL and GRE, and (ii) Writing and literature. ( Some decisions related to this made by the Orissa government.)
• Information Technology: [TCS1], [TCS-2], [TCS-3], [Wipro-BPO-1], [WIPRO-2], [Wipro-land-bought], [other IT and BPO companies]
• Steel plants: Tatas, KK Birla Group, Jindals, Essar, Murugappas, MESCO, POSCO etc. [1], [2], [3], [4], [5], [6:Jindal], [7:mesco-insightOrissa-july22-05], [8: A summary article in May 05 Orissa Review], [Adhunik-Sundergarh], [Rungta,Bhusand,Jindal-JSPL,Titanium], [production in 9 plants], [More MOUs], [More MOUs2]
• Tatas - Steel plant@Duburi, TCS@BBSR, Gopalpur: [0: TATA news releases], [1], [2], [3], [4], [5], [6:Kalinganagar],
• POSCO: [1], [2], [3], [4]; [Forbes-MOU-22Jul05]; [Forbes-2-22Jul05]; [FinExp-MOU-22Ijul05]; [HindTimes-MOU-22Jul05]; [AustrFinRev-MOU-22Jul05]; [InsightOrissa-MOU-22Jul05]; [Some-Details-from-Insight-Orissa]; [Pluses-n-minuses:rediff]; [Impact-on-infr]; [Hindu-July10-05]; [Rebuttal-to-criticisms-july15-ToI]; [FinExpr]; [Taats vs POSCO] ; [3 POSCO subunits]; [POSCO sets up subsidiary:Aug 31'05], [land-acq], [90 percent in Orissa in favour], [identifies 2 mines]
• POSCO ancillaries and Indian partners: [1:steel pipes], [2:Indian partners]
  • Editor’s comment on July 4 2005: My impession based on reading the newspapers is that Orissa govt has probably become wary of some of the big Indian players after the TATAs taking advantage of them in Gopalpur, and other companies in other places. It seems like (from reading various reports: [0:a list from 1999-how many of them materialized?], [1] , [2], [see page 3], [4] ) the TATAs signed MOUs about plants and infrastructure etc. at Gopalpur and got mining leases but then kind of forgot about making the plants and building infrastructure but have been using the mines. They used excuses, some valid, regarding this and that infrastructure not being there. [They have signed something more recently; lets see if that is for real or a sham to get mining leases renewed. Some progress in regards to their promise seems to have taken place: a; b ] The expectation was that Gopalpur would be like another Rourkela or Jamshedpur. But nothing remotely like that has happened. Coming back to POSCO, the MOU seem to have many clauses that would prevent POSCO from taking advantage of Orissa without delivering on its promises. Also, if POSCO does something like the TATAS, its easy to fight them, unlike fighting the TATAs. Even saying something bad about the TATAs is a no-no in India. [Thus the government should be careful in any of its signing with the TATAs or similar big Indian powerhouses. It should make sure that any mining lease should be tied to the other promises very tightly, and without loopholes.] So I personally am hopeful that POSCO will have a big impact on Paradeep and Orissa, more than the impact of any other private company in Orissa. Plus the investment comes from outside India, not from inside India. Thus making more capital available to other projects in India. Also the government is right to not put its egg in one basket. It makes perfect sense to try different avenues: foreign investors such as POSCO as well as the various Indian companies.
• From Steel to automobiles/2-wheelers-n-beyond: [Ind-Exp-22ndJune05]; [TOI-July4-05:Kymco,Corus]; [Pioneer-July27-05:Kwang-Yang-Motors-Taiwan], [Mahindras:TOI-Aug05-05], [Mahindra:InsightOrissa]
• Refractories: [July9-05-Telegraph]
• Alumina/Aluminium: Hindalco [1]; Vedanta [a], [b:Vedanta cares]; [Dubal-L&T]; [alumina-refinery-smelter-Rayagada]
• Titanium complex at Chhatrapur. (The Samaja Aug 16th, 2005).
• Mining: [1],
• Refinery: [1]; [IOC-Paradeep-21-6-05]; [July12-FinExp], [IOC-on-schedule]
• Breweries: [United Breweries]
• Paper: [JKPaper]
• SEZs: [1]
  • Gopalpur: [july26-05]
  • Paradeep: [july26-05]
• Power: Current availability; [list-of-possibilities-fe-july24-05], [June2-05-Reliance]; [Reliance2]; [RPG-jun2405-Tel]; [Neyveli]; [MMTC-Paradeep-Sept12-05]
• Food processing: [Shrimp-Navayuga]
• Hospitals: [Planned Heart Institute]
• Hotels: [ Statesman Aug 18'05], [Buisness-Standard- Sept9], [OTDC-disvestment]
• In relation to other states of India: [1], [2]
• Kalinganagar/Duburi: VISA, Jindal, Neelachal Ispat Nigam, MESCO, Tatas(?) [Ref:InsightOrissa]
• Factories in neighbouring states — impact on Orissa infrastructure: [Mittal-Jharkhand]
  Editor’s comment on July 27, 2005: Jharkhand and Chhatisgarh are landlocked. Mineral and manufacturing plants in Jharkhand and Chhatisgarh would need access to ports. This will provide opportunity for Orissa to make its case (get Jharkhand and Chhatisgarh legislator’s support) and make further infrastructure development such as ports, roads and railways. In particular, Dhamara and Chandabali port, train lines to them such as Tata-Baripada-Balasore-Dhamara, Bimlagarh-Talcher-Paradeep, and Daitari-Bansapani-Haridaspur-Paradeep, and roads ( Jharkhand, Orissa, Chhatisgarh) to them. While Jharkhand plants can use Haldia port in West Bengal, for Chhatisgarh the closest ports are in Orissa (Dhamara, Paradeep, and Gopalpur). Since Haldia port is overloaded, even for Jharkhand easy accessibility to Orissa ports is important. [a step in this regard], [another step]
  28th July 2005: Orissa, Jharkhand and Chhatisgarh should come together and jointly pursue several things. For example, an IIT in Rourkela (which has the best NIT among the three states) would benefit all the three states, as Rourkela is very close to both Chhatisgarh and Jharkhand. In return Orissa can support for an IIM in Bilaspur or Raipur. Good road and railway connectivity from Chhatisgarh and Jharkhand to Orissa ports will be beneficial to all. The three states can jointly promote cultural tourism to the tribal areas of the three states.
• Policies: [1]