ALSO READIndian Oil Corp launches tender for early May LNG cargo - trade sources Indian Oil Corp to receive first ever U.S. crude import in October Sanjiv Singh takes charge as Indian Oil Corp Chairman Indian Oil tests protocols for implantation of dynamic pricing Indian Oil Q3 net jumps 29% on more margins, inventory gain
Union Petroleum Minister Dharmendra Pradhan on Monday said public sector oil companies have decided to set up an integrated refinery-cum-petrochemical complex with a refining capacity of 60 million metric tonnes per annum (mmtpa) at an estimated cost of Rs 2.70 lakh crore at Babulwadi in Maharashtra.
State-run oil companies -- Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) -- have also planned to increase the refining capacity in the country by approximately 35 mmtpa in the next few years to meet the domestic demand of petroleum products, the minister informed the Lok Sabha in a written reply.
"The proposed refinery with refining capacity of 60 mmtpa will produce gasoline and diesel suitable for BS-VI. The refinery will be designed with flexibility in processing wide varieties of crude as well as flexibility in product mix," the minister said responding to a query.
The minister said to implement the project, an agreement was signed in June among the public sector oil companies to form a joint venture company -- West Coast Refinery and Petrochemical Ltd.
"Order of magnitude of cost estimated for the project is Rs 2.70 lakh crore and the share of IOCL, BPCL and HPCL is in ratio of 50:25:25 respectively," the written reply said.
The mega project is expected to be completed in around 60 months from the date of approval and receipt of all statutory clearances.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)