HPCL seeks more land for refinery in Maharashtra

State-run oil marketer Hindustan Petroleum Corporation (HPCL) has sought more land from the Maharashtra government to set up a new refinery, with a capacity of 9-15 million tonnes per annum (mtpa).

The company, which had earlier decided to set up a refinery at Lote Parshuram in Chiplun in Ratnagiri district on 2,800 hectares, has now sought 4,000 hectares from the state government, for the proposed facility at Chausal, in the same district. The government has indicated land will be available for the refinery, which will cost HPCL around Rs 30,000 crore.

The state government and HPCL have already held preliminary talks for the new site. The proposed site is close to JSW’s Jaigad Power project.

“We have realised we will need more land than what we had been offered by the Maharashtra government at Lote Parshuram. Considering future expansion needs, we are looking at a larger piece of land elsewhere,” a senior company executive told Business Standard.

The official added after Engineers India Ltd gave a detailed feasibility report for the new refinery, the company decided it would need more land.

HPCL has two refineries, one each in Mumbai and Visakhapatnam, with capacities of 6.5 mtpa and 8.3 mtpa, respectively. It wants to build a new refinery as its Mumbai refinery is too old to be modernised, the company had said earlier.

The government has, however, made it clear that while acquiring land, there will be no displacement of people. The rate at which the land is to be acquired will be decided after taking into account the ready reckoner rate — primarily used to calculate the market value of flats for stamp duty and registration charges.

HPCL may turn its Mumbai refinery into a national lubricant blending facility after a new refinery at Ratnagiri, said the official.

HPCL’s Mumbai refinery has the highest lubricant production capacity in India and is spread over 350 acres. The two refineries together upgrade crude petroleum into many value-added products and 300 grades of lubricants, specialities and greases.

The company will fund the refinery project partly through internal resources of Rs 11,000 crore and Rs 10,000 crore of loans. “After environment clearance, the refinery is expected to be ready in about four years,” CMD Subir Roy Choudhury said.