Hindustan Petroleum Corp (HPCL) has said it plans to invest Rs 30,000 crore to set up a 15-16 million tonnes-a-year (MTPA) refinery on the western coast of India.
The oil marketing and refining giant, which reported an 85 per cent dip in its net profit in the quarter ended March 31, is likely to set up the new refinery in Raigad district of Maharashtra, to relocate its Mumbai refinery.
"We have been shown three pieces of land by the Maharashtra government. We should be able to finalise the location in the next few weeks," HPCL Chairman and Managing Director Arun Balakrishnan told reporters.
"We face tremendous space constraint at our 6.5 million tonnes-a-year Mumbai refinery. A refinery of this size is spread over 2,000 acres of land but our refinery is spaced in just 350 acres. We feel, in 5-10 years, the space constraint will make the unit inefficient," another senior company official said.
Balakrishnan said the Mumbai refinery might eventually be shut down once the new refinery is built. "That decision we need to take in 6-7 years."
HPCL, which has a 7.5 MTPA unit at Vizag in Andhra Pradesh and is also building a 9 MTPA plant at Bathinda in Punjab, in a joint venture with steel czar Lakshmi Mittal, is contemplating a refinery of the size of 15 or 20 MTPA.