EIL may join OMCs to set up mega refinery complex

Refinery likely to come up in Maharashtra; its capacity may be in excess of 30 million tonnes per annum

Engineers India Ltd (EIL) is likely to join three oil marketing companies (OMCs) -- Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) -- to set up a mega refinery cum petrochemical complex on the western coast.

The refinery capacity may be in excess of 30 million tonne per annum. Though the exact location of the refinery is yet to be zeroed in, it may come up somewhere in Maharashtra.

"The oil marketing PSUs will tie up with EIL for the proposed refinery cum petrochemical complex. The refinery can have a capacity of over 30 mtpa. The capital expenditure would depend on the configuration of the refinery but on an average, Rs 2,000 crore would be invested per million tonne capacity", said Sanjiv Singh, director (refineries), IOCL.

Asked if EIL would have equity on the project, he said, "A team is evaluating the different aspects of the project. EIL has technical expertise but it has not been decided if they would pick up stake in the project."

Singh said, the country currently has sizeable oil refining surplus. Of the installed capacity of 230 million tonne (mt) of crude oil refining, actual consumption is 165 mt. However, there is shortfall in LPG production with the country meeting 50 per cent of its requirement through imports.