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.