State-owned Indian Oil Corp (IOC) today said it 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 million tonnes.
IOC has seven refineries totalling 54.2 million tonnes and a 11.5 million tonne subsidiary in Chennai Petroleum Corp Ltd (CPCL). It so far has no coastal refinery, impairing its ability to process cheaper difficult crude oils.
"We are looking at options to set up a 15 million tonnes refinery on the west coast," IOC Director (Refineries) Rajkumar Ghosh said here.
IOC, he said, 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 million tonnes 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 million tonnes by 2021-22. Koyali refinery to 18 million tonnes at the cost of Rs 4,858 crore by 2014.
Mathura refinery is being considered for expanding capacity 11 million tonnes from current 8 million tonnes.
Also, an expansion of Panipat unit to 18 or 21 million tonnes from current 15 million tonnes.
Its under construction 15 million ton Paradip refinery in Orissa would be expanded to 20 million tonnes in future.
"Paradip refinery will be commissioned by next year end," he added.
IOC plans to invest Rs 56,200 crore in the 12th Five Year Plan ending March 31, 2017, he said adding a majority of Rs 27,159 crore is planned to be spent in expanding refining capacity.
Betting big on petrochemicals, 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.