Hindustan Petroleum Corporation (HPCL) is understood to have finalised plans to set up a 9-million tonnes refinery in Maharashtra with an investment of around Rs.15,000 crore.
Official sources said the Maharasthra Government had offered land places and the company was in the process of giving a final shape to the proposal. The company, which has a 6.5-million tonnes a year refinery in Mumabi, wants to shift out the metropolis as lack of space had made its expansion plans difficult.
HPCL wants to build a 9-million tonnes unit and then double it at a later date. A consultant for doing detailed feasibility report (DFR) will be appointed soon and a decision on setting up the refinery would be finalised shortly.
The land offered for the refinery is located between Ratnagiri and Raigad districts. The new facility would be completed in 48 months from the date of receiving all approvals, officials said.
“The refinery in Mumbai is spread in 350 acres while for refinery of such a size at least 2,000 acres are required. We think that when the new refinery is completed, the Mumbai facility might be shut down,'' the official added.
HPCL has a 7.5-million tonnes-a-year unit at Vizag in Andhra Pradesh and is also building a 9-million tonnes plant at Bhatinda in Punjab in joint venture with Lakshmi N. Mittal.
The commissioning of feasibility study is being done and is expected to be completed in six months. The investment decision will be made based on the feasibility study.
The Maharashtra Government has been asked for 2,500-3,000 acres for the project.