Expansion of the 4.2 million tonnes Barauni refinery to six million tonnes is now estimated to cost Rs 1,963 crore as against the original cost of Rs 1803 crore, company sources said.

Delays in procurement of equipment too have led to a time overrun of three months and the project is now anticipated to be completed by May 2002 instead of earlier date of February 2002.

The expansion proposal of Barauni Refinery, which supplies distillate petroleum products to North and eastern India, also include a new FCC and hydrotreatment facilities as well as augmentation of crude oil pipeline.The refinery receives imported crude for processing through the Haldia-Barauni crude oil pipeline, sources said.

Expansion of IOC's six million tonne Panipat refinery to 12 million tonne at an estimated cost of Rs 3365 crore, is also facing a time overrun of four months.

Originally scheduled for completion by May 2002, the Panipat refinery expansion is now anticipated to be completed by September, 2002, sources said.

Malaysian oil major Petronas and Oil and Natural Gas Corporation (ONGC) have envinced interest in picking up stake in the project, they added. Setting up of a hydrotreating plant at the Fortune 500 company's Guwahati refinery is also facing a cost overrun of Rs 25 crore.

Originally estimated to cost Rs 497 crore, the project, which is scheduled for completion by May 2002, is now expected to cost Rs 522 crore, sources said.

The one-million tonne capacity Guwahati refinery, which processes only indigenous crude oil from the Assam oil fields, supplies distillates to North-eastern India and Siliguri in West Bengal.

Addition of hydrotreatment facility of the refinery would improve the quality of high-speed diesel oil, sources said.