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

People-to-people relations the real foundation of Indo-US friendship: Modi

On the second and last day of US president Donald Trump’s India visit, prime minister Narendra Modi said the real foundation of Indo-US friendship is people-to-people relations. Trump, meanwhile, sidestepped the contentious issues of the protests against the new citizenship law, telling a joint press

America loves India, America respects India: Trump

America loves India, America respects India, said US president Donald Trump as he and first lady Melania Trump began their short visit of India from Ahmedabad on Monday, welcomed by prime minister Narendra Modi. The US president was in Ahmedabad, in Modi`s home state of Gujarat, to attend th

2020 is crucial for CPSE: Arjun Ram Meghwal

"The year 2020 is going to be a significant year for India and especially for Central Public Sector Enterprises (CPSE), "said the Arjun Ram Meghwal, Minister of State for heavy industries and public enterprises on Wednesday at the 7th PSU Awards and Conference organised by Governance Now on 19th

Vice President springs surprise, speaks in 22 languages

Highlighting the importance of preserving, protecting and promoting Indian languages, the vice president of India, Shri M Venkaiah Naidu spoke in 22 languages at an event to mark International Mother Language Day in New Delhi. He urged all the citizens to take a pledge to promote mother tongue and also lea

Title Insurance: new product for old issues

Real estate is among the priciest investments around. More so for the common man who has to live with the burden of monthly EMIs. Yet, it is an art to discover the real owner of any property. Government and revenue records, which are easily accessible to the public, are not properly maintained. Individual

Aadhaar linkage with electoral roll on cards

The election commission of India (ECI) has been working on a series of electoral reforms, and the agenda includes linking Aadhaar with the electoral roll, considering paid news and false affidavit as electoral offence/corrupt practice, better monitoring the role of print media and social media intermediari



Archives

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter