New Delhi: State-owned Indian Oil Corp (IOC) is mulling setting up a Rs 30,000 crore refinery at Mundra in Gujarat as part of a plan to increase its processing capacity to 100 million tonnes.
IOC has seven refineries with a total capacity of 54.2 million tonnes and subsidiary Chennai Petroleum Corp operates a 11.5 million tonne plant.
A coastal refinery would enable IOC to ship in larger quantities of heavier grades of crude oil, which are cheaper because they are more difficult to process into fuels.
"We want to set up a coastal refinery on the west coast. We have been hunting for land for a 15 million ton a year refinery and now have two sites -- the Mundra port of the Adanis and another minor port in Maharashtra," a senior IOC official said.
The Adani Group has land at Mundra which IOC can take over for the refinery, he said, adding that in Maharashtra, the land would have to be acquired. The company has been offered land by Adani Group at Mundra, he said.
IOC has a 13.7 million tonne refinery at Koyali in Gujarat and does not have a presence in Maharashtra. All of its refineries are landlocked. Its first coastal refinery at Paradip in Odisha will come up later this year.
"We have commissioned Engineers India Ltd to do a configuration and location study for the west coast refinery," he said, adding the plant is scheduled to come up by 2021-22.
He said IOC has plans to raise its refining capacity to 100 million tonnes by 2021-22. The Koyali refinery capacity will be increased to 18 million tonnes at a cost of Rs 4,858 crore, while the Mathura plant may be expanded to 11 million tonnes from 8 million tonnes.
Also, an expansion of the Panipat plant to 18 or 21 million tonnes from 15 million tonnes is being considered.
The under-construction 15 million ton Paradip refinery in Odisha would be expanded to 20 million tonnes in future.
"Paradip refinery will be fully commissioned by year end," he added.
IOC plans to invest Rs 56,200 crore in the 12th Five Year Plan period ending March 31, 2017, he said, adding that Rs 27,159 crore is being set aside to expand refining capacity.
Betting big on petrochemicals, the company plans to set up a polypropylene unit at Paradip at a cost of Rs 3,150 crore while building similar units at Gujarat and Panipat.
The Paradip refinery, he said, is nearing mechanical completion and the petrochemical project will thereafter take 36-39 months to complete.
First Published: Thursday, March 13, 2014, 19:17