Indian Oil Consortium To Set Up India’s Biggest Oil Refinery In MaharashtraAn Essar Oil refinery at Vadinar village, near Jamnagar. Photo credit: SAM PANTHAKY/AFP/Getty Images

State-run oil marketers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp today (7 December) signed an agreement to build India's biggest oil refinery at a cost of $30 billion. The project for the 60-million tonne per annum (MTPA) refinery in Maharashtra has Indian Oil as the consortium leader, officials said in New Delhi.

Indian Oil will have a 50 per cent stake in the project, while Bharat Petroleum and Hindustan Petroleum will have 25 per cent each. The consortium agreement was signed on the sidelines of the Petrotech 2016 hydrocarbons conference in New Delhi in the presence of Petroleum Minister Dharmendra Pradhan and Union Ministers Nitin Gadkari, Piyush Goyal and Anil Dave.

Two to three sites on the Maharashtra coast are being explored for the refinery and the mega petrochemical complex that will be set up in two phases. The Phase-1 capacity will be 40 million tonnes (MT) together with an aromatic complex, naphtha cracker unit and a polymer complex. This will cost between Rs 1.2-1.5 lakh crore and will come up in five to six years from the date of land acquisition. The second phase, involving a 20 MT refinery, will cost Rs 50,000-60,000 crore.

The Mukesh Ambani-led Reliance Industries currently operates India's biggest refinery in Jamnagar in Gujarat, which has a capacity of 33 MT.

With inputs from IANS

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