The fate of the $10-billion refinery-cum-petrochem project at Vizag in Andhra Pradesh hangs in balance as Total SA of France has reportedly decided to opt out. Hindustan Petroleum Corporation, which led the consortium with Oil India, GAIL India, Lakshmi N Mittal and Total, might put the project on hold.

Total’s move comes after LN Mittal walked out of the project in November last year. The partners had carried out a pre-feasibility study for the project and were scheduled to take an investment decision in the second half of 2009.

An HPCL official said, “Total has communicated to our corporate planning division its decision to put their participation in the project on hold for the time being.” The official reiterated that the project is at a feasibility report level and it has not yet reached a stage of deciding on the equity structure. The five companies had only signed an MoU for looking at the feasibility of the project.