Vizag Port allots 384 acres to HPCL

The Visakhapatnam Port Trust (VPT) has allotted 384 acres of land on lease to HPCL's Vizag refinery for the latter's expansion.

HPCL refinery at Vizag currently has a capacity of 7.5 million tonnes, which would be raised to 15 million tonnes. This apart, a single point mooring berth at the outer harbour of Vizag port has been planned with an investment of about Rs 600 crore.

To implement these projects along with reorganising the existing tankage facilities to comply with Euro-III/IV norms, HPCL had sought 400 acres from VPT.

HPCL will make an initial payment of about Rs 288 crore. It has also assured cargo throughput of 15 million tonnes of crude oil from 2015. Both the companies signed a memorandum of understanding on Monday in this regard.

The VPT, on its part, has agreed to reduce the wharfage charges for crude oil handled at the offshore tanker terminal from Rs 67.73 per tonne to Rs 39.

It has also offered wharfage of Rs 17 per tonne on crude oil at the proposed single point mooring berth, a VPT press release stated.

The MoU was signed by MS Rao, deputy chairman, VPT, and P A B Raju, executive director (Visakha refinery), on behalf of HPCL.