IndianOil product pipeline caught in red tape

Vol 15, PW 26 (12 Jul 12) Midstream & Downstream

Stubborn state officials in Orissa and Jharkhand are blocking a proposed 1070-km pipeline to evacuate oil products from IndianOil’s upcoming 15m t/y refinery at Paradip.

IOC is laying the pipeline to transport 5m t/y of diesel, petrol and kerosene from the refinery in Orissa on the east coast to Ranchi in eastern Jharkhand and Raipur in central Chattisgarh. But the project is delayed two years from the original November 2011 completion deadline, and only likely to be completed by end-2013.

Luckily, or unluckily, the Paradip refinery is only likely to be ready by December 2013, delayed from its original March 2012 deadline. “The Orissa and Jharkhand governments have not granted RoUs for the (pipeline) project despite several requests over the last two years,” complains IOC.

“We are helpless. Our entire schedule is upset.

Every 15 days we are meeting state government representatives. All they tell us is they are processing our request.

” IOC insists it is doing everything possible to speed up work. “We regularly send progress reports to the oil ministry,” adds IOC.

“Copies are also sent to the PMO.” In Chattisgarh where the state government moves faster, IOC contractor Kalpataru has so far laid only 180-km of the total 1070-km pipeline length.

“Chattisgarh cleared part of the pipeline last year itself,” we learn. Last August, IOC hired Kalpataru to lay a 280-km stretch of the pipeline; and Essar to lay the remaining 790-km.

Only Kalpataru has done any work. “Our contractors are sitting idle,” we hear.

“Pipe supplies and equipment are on site.” GK Dhal, Orissa principal secretary (commerce and transport), did not return calls made by this report, nor did Jharkhand chief secretary SK Chaudhary.

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