INVESTMENT COMMITMENT in the State’s most-ambitious project as on date – the Bina Refineries — has touched Rs 3100 crore in just three months against the commitment of Rs 3000 crore set to be completed by December end. The total commitment made by the Bharat Oman Refineries Limited for the projects stands at Rs 10,000 crore..
“We’re in fact two-month ahead of the target, with a progress of one percent a month,” said managing director of BORL, R P Singh, here on Monday.
Clearing airs of apprehensions about the said project, the MD said there had been rumours from quarters that the project had virtually become static, which was not true. “The ground reality is that lots of works have been done in terms of awarding contracts and construction works. In fact, after approval of the project in January 1, 50 per cent orders have been completed.
It’s the fastest-moving project in my 35-year career,” the managing director claimed. Taking the construction part at the site, Singh said two major contracts have been awarded – a 60-room hostel would get completed by December or January end, and in another six to eight months, staff houses would be built. The foundation work for the crude unit has also been started.
Mentioning about the contracts awarded, he said a major contract worth Rs 275 crore has been awarded to a Chinese firm for hydro-cracker reactor. “BHEL would be setting up our 99 MW power plant, which would be commissioned by November 2008 and several units of the PSU major would provide various services,” he said. An offshore company has been awarded the contract for lying of pipeline from River Betwa to the site.
“The entire process of awarding contracts is transparent,” he claimed. The construction work commenced this January with an expenditure of Rs 200 crore. It is expected to go operational by June 2009, with an annual refining capacity of 60 lakh tonne of crude.
With the Central Government having allowed Bina BPCL to enhance its equity from 26 percent to 50 per cent, it would contribute roughly Rs 2000 crore for the project. An amount of Rs 6400 crore would be generated as debt from the State Bank of India as the lead bank along with 14 other banks. “As per the joint venture agreement, initially both BPCL and Oman Refinery each had equity of 26 per cent.
But after putting Rs 75 crore, Oman refused to contribute further, and hence we’ve to go on our own now,” he said, adding that the overseas partner has now again started considering the project. “We’ll give them the first option,” he added.
Simultaneously, having done with the commitment to the tune of more than 30 per cent, at the employment front – 2000 workers are currently working. “We’ve also recruited 40 engineers from MP, through campus placement and when the refinery would go operational, there would be no less than 10,000 workers here,” Singh stated.
Bina Refinery would have the credit to be the first to produce next generation, environment-friendly Euro-IV MS (petrol) and diesel, which would be in use in four metros by 2010. Some of the other products are LPG (4-5%), naptha, Aviation Turbine Fuel (10%), Kerosene (7-8%) and 6-7% of petroleum coke.
The MD said the project would take ample care to protect environment and no effluent would be discharged in the ground, instead would be used by the plant itself. For workers safety, the company official stated that four-tier system has been set up to keep a vigil on safety measures during work.
Speaking high of the state government, Singh said apart from being supportive, the government holds a task force meeting headed by the principal secretary, Commerce & Industries in alternative months along with other departments to review the progress.
Singh was found highly optimistic about the future of the project as well as the Bina town. “There would be a sea change, when the refinery goes on-stream and help in generating ancillary units and economic growth,” he said by citing the hike in land prices, which used to be Rs 30,000 per acre, turning to be Rs 4-5 lakh at present.