Vishakhapatnam strategic crude storage facility which was originally scheduled for completion in October 2011 is not going to happen soon. The project whose completion date was changed many times in the past is now scheduled for completion in February 2015. The project being built by Indian Strategic Petroleum Reserves Ltd. (ISPRL) has seen delays mainly due to geological impediments. As a result of delay, the project’s cost too has been revised many times. Originally, the cost estimate for the Vizag project was Rs.671.83 crore for 1.0 MMT capacity, which was revised upwards to Rs.1038 crore as the storage capacity was enhanced to 1.33 MMT. Once again the cost is likely to be increased to Rs.1183.35 crore due to change in scope of work, increase in statutory levies and foreign exchange fluctuation. HPCL will bear Rs 267 crore of the cost and will have sole access to one of the two compartments with 03 MMT storage capacity.

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