IOC, BPCL, HPCL invest Rs 1.5 lakh crore set up large refinery

IOC, BPCL, HPCL to invest Rs 1.5 lakh crore to set up large refinery

7:56 AM, 28th January 2016
IOC, BPCL, HPCL to invest Rs 1.5 lakh crore to set up large refinery
Dharmendra Pradhan, oil minister of India. (File photo)

NEW DELHI, INDIA: Public sector oil firms Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL) along with Engineers India Ltd (EIL) will invest Rs 1.5 lakh crore in setting India’s biggest refinery on the west coast in Maharashtra (India), said Dharmendra Pradhan, oil minister, India.

The refinery will produce 60 million tonne oil per year.

“Refinery to be built in two phases (40+20 million tonne); 1st phase will have more than Rs 1 lakh crore investment (biggest in India),” he said.

IOC has been looking at west coast for a refinery as catering to customers in West and South was difficult with its refineries mostly in the North. HPCL and BPCL have also been looking at a bigger refinery because of constraints they face at their Mumbai units.

“The refinery will produce petrol, diesel, LPG, ATF and feedstock for petrochemical plants in plastic, chemical and textile industries in Maharashtra,” said Pradhan, who discussed the setting up of the refinery with Maharashtra chief minister Devendra Fadnavis.

“Government of Maharashtra and ministry of petroleum and natural gas will closely work for early identification of land for refinery and finalisation of details of project,” he said.

15 million tonne a year is the biggest refinery any public sector unit has set up in one stage. IOC recently started its 15 million tonne unit at Paradip in Odisha, India.

Reliance Industries holds the distinction of building the biggest refinery in India till now. It built its first refinery at Jamnagar in Gujarat with a capacity of 27 million tonne, which was subsequently expanded to 33 million tonne. It has built another unit adjacent to it for exports, with a capacity of 29 million tonne.

The refinery being planned by the state-owned firms will be bigger than that. The phase-1 itself will be bigger than any one single unit. It will cost Rs 2,500 crore per million tonne and for the full 60 million tonne it will cost Rs 1.5 lakh crore. It will also be accompanied by a petrochemical complex.

Being on the west coast will provide the unit a natural advantage of easily sourcing crude oil from the Middle-East and Africa, officials said.

Also, moving products to consumption heartland will not be difficult.

IOC has six refineries with a total capacity of 54.20 million tonne. It also has subsidiary refineries with 11.50 million tonne capacity. Paradip has taken its refining capacity to 80.7 million tonne.

© Press Trust of India          



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