Eastern India refinery, a joint venture project of KPC and IOC, was scheduled to be completed by 2002 as per government estimates and is now anticipated to be completed only in 2003.

"KPC is yet to formally confirm its participation leading to delay in formation of the joint venture company and selection of project management consultant (PMC). A delay of 12 months is anticipated at present in project completion," a recent note prepared for petroleum ministry by Engineers India Ltd (EIL) said.

Eastern India refinery, to be set up in Orissa, had received sanctions from government on July 1998.

Of the total project cost of Rs 8,270 crore, IOC-KPC equity is projected to be Rs. 860 crore, the note said.

With regard to the status of theproject, it said, "IOC has now decided to go ahead with selection of PMC and process licensor by June or July 1999."

Discussions are on with KPC on their participation in the project while other activities are being carried out to avoid any further delay, the note said.

The project is now anticipated to be completed by July 2003 and the projected cost commitment has been fixed at the government sanctioned cost.

Stating that the financial performance of the project so far was only 0.57 per cent, the note added that the total revised financial outlay for the project during 1998-99 was at Rs 10 crore.

The expenditure against the outlay was Rs 44.54 crore while the progress performance including physical, construction and manufacturing schedules were yet to be finalised, the note said.

EIL has been appointed as a ministry monitoring cell by the petroleum ministry to submit the project trend and action reports for major refinery projects.

The report has also gone through the progress of otherrefineries like Numaligarh refinery and marketing terminal project of Assam, Gujarat refinery expansion project, Vizag refinery project in Andhra Pradesh, Central India refinery project in Madhya Pradesh.