Despite the withdrawal by joint venture partner Oman Oil Company, work on the proposed Rs 6354 crore (Rs 63.54 billion) Bina oil refinery in Madhya Pradesh will start later this month with Indian promoter Bharat Petroleum Corporation Ltd picking up a higher stake, Petroleum Minister Ram Naik said on Tuesday.
"Deputy Prime Minister L K Advani will launch the actual construction work of the six million tonne refinery on May 26. The periphery works are already over," Naik, who is leading a high power oil and gas delegation for talks to forge ties with Iran in energy sector, said.
So far, only Rs 150 crore (Rs 1.5 billion) have been spent on the project promoted by BPCL, in which the government is currently in the process of divesting 34 per cent of its stake.
The construction of the refinery, whose foundation stone was laid in 1995 by the then Prime Minister P V Narasimha Rao, was plagued by delays because of objections by environmental activists and subsequent court cases.
Oman Oil Company, which had initially agreed to a 26 per cent share in the project, pulled out citing delays but agreed to retain a two per cent stake.
Naik said the Cabinet had decided a fortnight ago to go ahead with the project without allowing the divestment process of BPCL to come in between.
He also added that work on Paradeep Refinery in Orissa, which was delayed after the state government withdrew tax concessions to the project, would start soon.
Kuwait Petroleum Corporation, which was to be a partner in the nine million tonne capacity project to be build at a cost of Rs 9.5 crore (Rs 95 million), had also withdrawn citing "inordinate delays".
