Bina refinery work to begin next month
WITH BHARAT Oman Refinery Limited - the new name of the Bina Refinery project having planned to procure a loan of Rs 6600 crore from the market, the first phase of commissioning job would begin next month. The work tenders for the project had already been floated.india Updated: Mar 28, 2006 15:55 IST
WITH BHARAT Oman Refinery Limited - the new name of the Bina Refinery project having planned to procure a loan of Rs 6600 crore from the market, the first phase of commissioning job would begin next month. The work tenders for the project had already been floated.
Speaking to the Hindustan Times, district Collector Shiv Shekhar Shukla said that the tenders of Rs 45 crore have been called for levelling job at the refinery site and the tenders of Rs 15 crore for constructing of boundary wall. Various companies interested in the works would visit the site on March 30.
“Earlier, 3300 acres land had been allotted in the name of Bharat Petroleum Company limited, but the new name of the company is Bharat Oman Oil Refinery Limited (BORL),” added Shukla.
The administration is transferring the land in the name of BORL. With the change in name, the new company would be able to obtain loan of Rs 6600 crore from market and the remaining amount will be raised from equity shares.
Meanwhile, addressing MP Investors’ Meet at Bhopal today, BPCL’s managing director R B Singh said the first phase of commission at Bina would begin next month and the entire mega project would be completed by 2009. “The project which was initiated in 1988 with initial investment plan of Rs 10,300 crore would finally have a production capacity of six million metric ton. We’ve committed Rs 6000 crore as our share,” stated Singh.
The installation of the refinery would boost the economic status of the State. In the year 1995, former prime minister P V Narasimha Rao had laid the foundation of Bharat Oman Refinery (BORL) at Bina of Sagar district.
For the last few years, all things went against the refinery, with the Oman Oil Company backtracking from the project in the year 2000, despite of having invested Rs 75 crore in the project. Both BPCL and OOC invested Rs 150 crore in the project.
The delay raised the cost of project from Rs 7000 crore to Rs 9000 crore. The project officer, C K Jain, said that former chief minister Babulal Gaur had accepted the demand for sales tax deferment for 15 years, which would come Rs 250 crore per annum. The process to appoint engineers and other staff is under way.