THE RS 10,378 crore Bina Refinery project at Bina has gathered momentum and is expected to go operational by June 2009 to refine 60 lakh tonnes of crude annually to produce Gen-next Euro-IV Petrol & Diesel for the first time in the country. Rs 200 crore has been pumped into the project since it took off in January this year.
With the central government having allowed Bina BPCL to enhance its equity from 26 percent to 50 percent, it would contribute roughly Rs 2000 crore for the project, whereas Rs 6300 crore would be generated as debt from various financial institutions and 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,” said Bharat Oman Refineries Limited’s (BORL) Managing Director, RP Singh in his presentation to a team from Bhopal comprising Commerce & Industry minister Babulal Gaur, Industry department’s senior officials and a team of media persons, which visited the refinery site at Bina on Thursday.
Detailing on the current financial progress status, the MD said against a commitment of Rs 650 crore, an expenditure of Rs 200 crore has already been incurred on infrastructure development. He said the company would have a commitment of Rs 2000 crore by December end, against which the expenditure would be Rs 300 crore. “We’re 0.8 per cent ahead of our target and after this phase, expenditure would move up on a rapid pace, as various kinds of works would be in progress,” he remarked.
With a projection of 500 direct employment and 2000 indirect ones, employment opportunities during ground-level constructions is expected to touch 10,000 as contract personnel by October 2007. “Efforts are on to recruit maximum staff from MP and provision has been made to utilize local unskilled labourers in construction contracts,” replied Singh, in response to Gaur’s request to include maximum local manpower in the project.
The project is Spread over 3300 acres of land, of which the state government has provided 2500 acres. If one goes by the figures of BORL, the refinery is likely to go operational by June 2009, six months ahead of its deadline.
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, Naptha, Aviation Turbine Fuel, Sulphur, Coke, SKO et al.
The refinery would also have its two captive power plants, with a total capacity of 96 MW and BORL has tied-up with the US based companies UOP, Chevron Lummus Global, ABB Lummus for MS Block, Hydrocracker and Delayed Coker and Technip Netherlands for Hydrogen for process technology and Engineers India Limited for all Open-Art units.
The MD told the team that a 200 meter green belt has been planned around the site, with dense forest in five years. “In addition, there would be hostel building, office, warehouse and approach road for which contracts have been awarded and a modern township would follow,” he added.