IOC, BPCL, HPCL to invest Rs 1.5 lakh crore to set up biggest refinery unit on west coast

NEW DELHI: Public sector oil firms IOC, BPCL, HPCL and EIL will invest Rs 1.5 lakh crore in setting India’s biggest refinery on the west coast, Oil Minister Dharmendra Pradhan said.

Indian Oil Corp (IOC), the nation’s biggest refiner, will build a 60-million tonne a year oil refinery in Maharashtra along with Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Engineers India Ltd (EIL), Pradhan said in a twitter post.

Discussed with CM Maharashtra setting up of 60 MMT mega refinery in coastal Maharashtra by IOC,BPCL,HPCL & EIL
— Dharmendra Pradhan (@dpradhanbjp) January 25, 2016
“Refinery to be built in 2 phases (40 plus 20 million tonnes); the first phase will have more than Rs 1 lakh crore investment (biggest in India),” he said.
IOC has been looking at the 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.
Refinery to be built in 2 phases (40+20 MMT);1st phase will have >1 Lakh Crore investment(biggest in India)
— Dharmendra Pradhan (@dpradhanbjp) January 25, 2016
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“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 in Mumbai on Monday.
“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 the project,” he added.
Fifteen million tonnes a year is the biggest refinery any public sector unit has set up in one stage.

IOC recently started its 15 million tonnes unit at Paradip in Odisha.
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 tonnes, which was subsequently expanded to 33 million tonnes. It has built another unit adjacent to it for exports, with a capacity of 29 million tonnes.

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 tonnes and for the full 60 million tonnes, 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 with 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 tonnes. It also has subsidiary refineries with 11.50 million tonnes capacity. Paradip has taken its refining capacity to 80.7 million tonnes.

With PTI

Posted by on January 26, 2016. Filed under Economy. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.