VISAKHAPATNAM: The Hindustan Petroleum Corporation Limited (HPCL) - one of the Navaratnas - has launched work to expand its capacity to 15 million tonnes per annum.

The project will involve a total investment of Rs.8,300 crores and it will be completed by 2010. "The expansion work is taken up as per schedule and we are confident that it will be completed in three to four years," HPCL General Manager and in-charge of Visakh Refinery A.S. Rao told The Hindu .

The refinery, which scaled new heights by exceeding its installed capacity of 7.5 million tonnes per annum during the past three years, is gearing up to refine close to eight million tonnes during current fiscal.

As part of expansion, the infrastructure will be augmented and a single buoy mooring will be developed to receive crude from Very Large Crude Carrier vessels with associated crude oil storage terminal facility with a total investment of Rs.700 crores. It is proposed to set up mixed xylenes production, augmentation of propylene production and deep-water offshore crude import facilities.

The HPCL was investing Rs.2,200 crores on clean fuel project for producing Euro-III compliant petrol and diesel.

The refinery is now in the process of acquiring land from the port authorities for its expansion, according to Mr.Rao.

Petroleum hub

The expansion is part of a fast-track project following the decision of the Government of India to promote Visakhapatnam into one of the Petroleum, Chemical and Petrochemical Investment Regions (PCPIR).

The project will help achieve conversion of the bottom-of-the-barrel and improve the size of the operations.

The Centre has already decided to develop the country into a petroleum hub and Visakhapatnam is on top of its agenda.

The HPCL and M/s Total of France are in advance stage of completing their joint venture LPG cavern project near Dolphin's Nose for storing 60,000 tonne.

Because of its close proximity to the domestic and South East Asia/China, it is hoped that Visakhapatnam has the potential to become premier petroleum hub. As part of it, the petrochemical complex will come up in the Special Economic Zone (SEZ) proposed near Achutapuram by the State Government.

Prime Minister Manmohan Singh, during his visit to the city for launching expansion of the Visakhapatnam Steel Plant three months ago, had hinted at setting up a mega petrochemical zone near Achutapuram.

On its part, the HPCL will invest over Rs.6,000 crores on its petrochemical complex. It is likely to be completed by 2,012.

The HPCL needs 3,500 acres for the project, of which the Government will give 1,500 acres in the SEZ and 2,000 acres from area adjoining the zone.

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