According to him, top officials of the two companies will soon be in Orissa to select the site for the project. Though Al Manahal had initially planned to set up the plant at Gopalpur when it signed the memorandum of understanding for the project in December 1997, it is now looking at the Paradip area, sources said.

In the first phase of the project, Al Manahal will set up an oil refinery with a capacity of five million tonnes per annum at an investment of Rs 7,500 crore. The capacity will be increased by five to seven million tonnes at an additional investment of Rs 12,000 crore in the second phase. The state-owned IPICOL will have a minor stake in the project.

Besides the refinery, the complex will have a 1,000mw gas-based power plant as well as a fertiliser plant. The company plansto import the raw material from Indonesia. However, in view of the trouble in that country, it is now planning to import gas in vapourised form from Myanmar for the refinery. Al Manahal is talking to Andhra Pradesh and some other state governments for sale of power.

Patnaik said the government of Orissa has lined up three other refinery projects besides the Al Manahal project. The Eastern India refinery project, jointly promoted by Indian Oil Corporation and Kuwait Petroleum Corporation, has already received the approval of the Cabinet Committee on Economic Affairs. The nine-million tonne refinery project will come up at Paradip at an investment of Rs 8,070 crore. Its two main promoters will each hold 26 per cent stake in the company.

Stating that the state government has already prepared the groundwork for the project, Patnaik said 3420 acres have been identified at Paradip and the Infrastructure Development Corporation of Orissa has been entrusted with the job of acquiring land. Forest clearance hasbeen sought from the Union government for about 90 acre of selected site which is forest land.

The project has already obtained the clearance of the environment and forest ministry as well as the state pollution control board. The Central Electricity Authority (CEA) and the Orissa Electricity Regulatory Commission (OERC) have given permission for setting up the captive power plant.

Patnaik said the Hinduja group and the Ispat group have also received licences to set up oil refineries in Orissa. The Ispat group plans to put up a nine-million tonne facility at Paradip at an investment of Rs 10,000 crore. The group is now making queries about the facilities available at the site.

The Hindujas have got a licence to set up a two million tonne plant at an investment of Rs 3,000 crore. They had initially selected a site near Haridaspur for locating the plant, but are now looking at the Paradip region. The government is seriously thinking of offering sites at the proposed industrial park at Paradip to these oilcompanies, Patnaik said.