IndianOil problems with Koyali expansion

Vol 16, PW 4 (06 Sep 12) News in Brief

IndianOil has been forced to turn to the Gujarat government’s slow-moving land acquisition process so it can go ahead with the Rs4858cr ($872m) expansion of one of India’s oldest refineries.

Landowners near IndianOil’s 13.7m t/y Koyali refinery are unwilling to sell the company the 55 acres it desperately needs for a proposed expansion to 18m t/y. Last month IOC appointed Hyderabad-based Mescon Survey Services to carry out an initial land survey at nearby Bajwa village in Vadodara district.

“IOC wanted to acquire land by ‘consent’ from landowners at a mutually agreed rate,” says a source. “But that didn’t work out.

” Gujarat state authorities must decide the appropriate compensation payments and are likely to direct IOC to pay out over Rs88cr ($16m) to landowners. Koyali sprawls over 1424 acres.

Set up with technical assistance from the former Soviet Union, it was commissioned in October 1965 with an initial capacity of only 2m t/y.

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