Reliance Petroleum, a listed subsidiary of Reliance Industries, is gearing up to complete the 27 million tonne greenfield refinery at Jamnagar by the third quarter of 2008, six months ahead of schedule. The refinery, which has the status of a special economic zone (SEZ), was initially slated to be completed within 36 months.
Reliance Industries has a 33 million tonne refinery at Jamnagar.
“The $6 billion refinery will definitely be completed by the third quarter of 2008, though we are trying to further shorten the time span,” a Reliance Industries executive told Hindustan Times.
The company hopes to generate revenues in the vicinity of Rs 80,000 crore in 2009-10, the first year of full production. “A similar refinery in Kuwait is expected to call for an investment of nearly $15 billion. By keeping investments low, the company hopes to reap benefits,” the executive added.
The company has completed 80 per cent of the engineering work. Procurement and contract orders have also been completed, apart from 1 million cubic metres of concrete work being in place. Nearly 40,000 tonnes of structural steel fabrication and about 34,000 tonnes of tankage fabrication have been completed at the site as has about 30 per cent of pipe fabrication.
The government on Thursday gave its nod for the conversion of the sector-specific SEZ into a multi-product zone by inclusion of an additional 733.70 hectares. The board of approval also gave its go-ahead to a relaxation of contiguity conditions because two rail lines and two roads pass through the land covered by the SEZ.