Bhubaneswar: Indian Oil Company (IOC), India's leading oil refiner and marketer, has finalized its decision to abandon the petrochemicals component from its Paradip based mega project in Orissa due to the financial crunch the company is facing. IOC has given its in-principle decision to go ahead with financing the refinery component requiring an estimated investment of Rs. 25,000 crore and cutting back on the petrochemicals part. However, an opinion was expressed by the board to consider funding the Paradip project's petrochemicals component from outside the company's books by seeking interested partners to form a JV for the purpose. The refinery and petrochemicals complex was planned with a capability of processing 15 mln tons of crude a year.

According to sources, the decision was taken in the board meeting in the light of IOC facing a daily loss of Rs.413 crore on selling motor and kitchen fuels at artificially low prices set by the government. This fiscal's expected loss is Rs.121,015 crore in the scenario where the crude prices will hover around US$145 per barrel.