Panipat refinery expansion begins as IOC issues LOIs
After much uncertainty, the expansion of Indian Oil's Panipat refinery has finally begun.
This month IOC issued 'Letters of Intent' to Larsen & Toubro and Daelim for the diesel hydrotreater and hydrocracker unit packages. Each package will cost Rs500cr ($104m).
"Design work has started," we are told. "Procurement, supply and construction will begin soon." Completion schedule is 26 months from the date of LOI.
IOC has yet to decide on five other packages: crude distillation unit, vacuum distillation unit, delayed coker unit, power unit and utilities offsite, costing a total of more than Rs2, 000cr ($416m). We learn IOC is negotiating with Engineers India to do the work on a 'conventional basis' rather than tender.
A final decision will be taken when IOC chairman M.S Ramachandran returns from amonths vacation in the US.