In their zeal to make the Rs 10,000-crore project an election issue in the forthcoming Lok Sabha polls in Orissa, the political parties are blaming each other for the delay in setting up the nine-million tonne refinery which was conceived during the United Front regime.

The project requires around 3300 acres in the vicinity of Paradip port. This includes 2900 acres belonging to 17 villages. Initially it was decided that Indian Oil Corporation, the main promoter of the project, will provide Rs 37 crore to the state government as cost of acquiring private land.

However, the state government is now finding it difficult toacquire private land as the locals are demanding more money. Villagers, who are reluctant to part with their land, have also begun agitation to protest against the location of the project. Consequently, the state government has requested IOC to pay more, but IOC is reluctant to do so.

At a recent high-level meeting, the situation was reviewed by Orissa Chief Minister Giridhar Gamang. It was decided to constitute a Rehabilitation Advisory Committee (RAC) to look into the problems of land acquisition and rehabilitation of the people.

The project has its own problems. The initial proposal of a joint promotion by IOC and Kuwait Oil Company (KOC) has run into rough weather after the foreign partner developed cold feet on the project. IOC chairman MA Pathan is reported to have sought a final decision from KOC in the matter.

Given the current global scenario of depressed crude and petroleum prices, KOC is unlikely to join the project. In that case, IOC has to scout for another partner.