New refinery to come up in Maharashtra

BPCL to have a new refinery and petrochemical complex in Mumbai as replacement to the old one

geetanjali

Geetanjali Minhas | December 29, 2015 | Mumbai



Union petroleum minister, Dharmendra Pradhan on Monday announced setting up of a new state-of-the-art crude oil distillation unit (CDU) of Bharat Petroleum’s Mumbai refinery and a petrochemicals complex in Maharashtra.

 
The integrated crude and vacuum distillation unit with a capacity 6.0 MMTPA is a replacement of the old crude and vacuum units of the refinery and costs Rs 1,419 crore.
 
“Keeping in view the increasing demand for petroleum and petro-products in the coming 25 years, the government has decided to set up a new refinery project with a capacity of 550 million metric tonnes by April 2017 at the west coast of Maharashtra. The proposed petrochem complex will be a global oil and petrochem hub. The refinery will be helpful in industrial development as well as employment generation,” Pradhan said. 
 
“It is in the interest of the state, which does not have a single large refinery on its long coastline, to house the largest refinery and petrochem complex”, he added.
 
At present, the largest oil refineries in the public sector are being run by Indian Oil Corporation in Panipat and Paradip in Odisha with an installed capacity of 15 MTPA each. The world’s largest refinery complex on a single location is run by Reliance Industries in Jamnagar with one plant having a capacity of 30 MTPA while another with a capacity of 28 MTPA. Essar Oil too operates a 20 MTPA refinery in Vadinar in Gujarat.
 
The new unit would help in dismantling the old CDU units set in 1955 thereby creating space for refinery modernisation and profitability. It will also have higher distillate yield of 3%.
 
International Energy Agency's (IEA) recently projected domestic oil demand to rise to 550 MTPA by 2040 from the current 165 MTPA. In lieu of this, Pradhan asked state-run oil companies to think big along these projection lines.
 
Responding to a query on why the government is not allowing oil marketers to align retail price of petrol and diesel according to crude prices, Pradhan said the average crude price for oil products being sold is USD 50-55 a barrel and not USD 34-35 a barrel which is the current international price. "State-run oil companies are making heavy inventory losses as their average crude price is much higher than the present market price. They have lost over Rs 10,000 crore worth of inventory alone this year. So how can you accuse them of not reducing the retail prices?" he says.
 
“Almost 50% of the retail price of petrol and 42% of the retail price of diesel is constituted of taxes which are state levies. The centre can't do much as state levies are much higher than the central levies” he added.
 
Chief minister Devendra Fadnavis, who was present during the announcement, said that his government would ensure in providing large swathe of fertile agrarian land with green clearances for hassle free implementation. “We would not disappoint you in realising your grand vision for the state," he said.

Comments

 

Other News

Think twice before tarnishing image of Indian Army

Ever since the controversy over Major Leetul Gogoi`s meeting with a young girl in a Kashmir hotel started raging on May 23, I have seen that people, particularly scribes, are leaving no stone unturned to blemish the Indian Army’s image. First things first! If the meeting had happened a

IIT Bombay Racing to launch ‘EVoX’ tomorrow

IIT Bombay Racing will launch its 6th generation electric car ‘EVoX’ in the institute’s on Saturday. The racing car developed by Formula Student team from India based at IIT Bombay is designed to run at 100 km per hour in just 2.88 seconds. It is powered by 40 KW motors, titanium uprights

SAIL supplies 10,500 tonnes of steel in Kishanganga hydroelectric power project

SAIL has supplied 10,500 tonnes of steel for the 330 mega watt hydroelectric project, featuring three power generating units of 110 MW each. The enterprise’s steel supply consists of TMT rebars, structurals, plates and sheets. SAIL had also supplied around 70 percent steel used in the

Algerian Ambassador visits Goa Shipyard

The recent visit of Ambassador of Algeria to India H.E. Hamza Yahia Cherif to Goa Shipyard Limited has given a boost to the PSU’s ambition of receiving international orders from the Mediterranean region. CMD, GSL, Rear Admiral (Retd) Shekhar Mital apprised the Ambassador about various

IOCL posts Rs 21,346 crore net profit in 2017-18

IndianOil has clocked a net profit of Rs 21,346 crore for 2017-18 fiscal as compared to Rs 19,106 crore in the last fiscal. The reported revenue from operations for 2017-18 FY was Rs 5,06,428 crore as compared to Rs 4,45,442 crore in 2016-17. IndianOil’s reported revenue from operation

NTPC to help Bihar improve power sector

A memorandum of understanding (MoU) was entered amongst Bihar government, Bihar State Power Holding Company Ltd. (BSPHCL), Bihar State Power Generation Co. Ltd (BSPGCL), North Bihar Power Distribution Company Ltd.(NBPDCL), South Bihar Power Distribution Company Ltd.(SBPDCL), Bihar State Power Transmission

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter