Paradip-Raipur-Ranchi pipeline project implemented by PSU refiner, Indian Oil Corporation may see cost escalation as one of the contractors, Essar Projects India Ltd is demanding extra money for completing the project. Essar Projects to whom the project was awarded in February 2011 has told IOCL that inordinate delay in getting environment clearance has resulted in cost escalation. As per the original schedule the project should have been completed by September 2012. However, the project received environment and forest clearance only in October 2013.
Paradip-Raipur-Ranchi pipeline project involves laying pipeline from Paradip to Raipur via Sambalpur and from Sambalpur to Ranchi. 1108-km pipeline project is estimated to cost Rs 1,793 crore. The pipeline will have tap-off points at Jatni , Jharsuguda, Bundu, Korba and Raipur. IOCL plans to transport about two million tones of motor spirit, kerosene and high speed diesel from its under-construction Paradip refinery to the states of Jharkhand and Chhattisgarh.