Indian Oil Corp planning a Rs 30,000 crore refinery on India’s west coast

28-Nov-12

Indian Oil Corp (IOC) is planning a Rs 30,000 crore refinery on the west coast in Gujarat or Maharashtra as part of its plans to raise the refining capacity to 100 mln tons, as per PTI. IOC has seven refineries totalling 54.2 mln tons and a 11.5 mln ton subsidiary - Chennai Petroleum Corp Ltd (CPCL). It so far has no coastal refinery, impairing its ability to process cheaper difficult crude oils. IOC is looking for sites for the new unit in Gujarat and Maharashtra. The company has been offered land by Adani Group at Mundra in Gujarat as well as by Shapoorji Pallonji Group in Saurashtra. IOC already has a 13.7 mln tons refinery at Koyali in Gujarat but does not have a presence in Maharashtra. All of its refineries are landlocked. It is building a coastal refinery at Paradip in Orissa by September 2013. “We have commissioned Engineers India Ltd to do a configuration and location study for the west coast refinery,” Ghosh said, adding the study is likely to come-in by year-end after which the company will commission a detailed feasibility report (DFR). The refinery on the west coast is to come up by the 13th Five Year Plan. Ghosh said IOC has plans to raise its refining capacity to 100 mln tons by 2021-22, Koyali refinery to 18 mln tons at the cost of Rs 4,858 crore by 2014. Mathura refinery is being considered for expanding capacity 11 mln tons from current 8 mln tons and also, an expansion of Panipat unit to 18 or 21 mln tons from current 15 mln tons. Its under construction 15 mln ton Paradip refinery in Orissa would be expanded to 20 mln tons in future. Paradip refinery will be commissioned by end 2013. IOC plans to invest Rs 56,200 crore in the 12th Five Year Plan ending March 31, 2017. A majority of Rs 27,159 crore is planned to be spent in expanding refining capacity. The company has planned to set up a polypropylene unit at Paradip at the cost of Rs 3,150 crore while also building similar units at Gujarat and Panipat refineries. Paradip refinery, he said, is nearing mechanical completion and the petrochemical project will thereafter take 36-39 months to complete.