The Hindu : Andhra Pradesh News : Decision on refinery by year-end

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Thursday, Aug 21, 2008
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Andhra Pradesh

Andhra Pradesh

Decision on refinery by year-end

Santosh Patnaik

VISAKHAPATNAM: The roadmap on construction of the proposed 15 million tonne refinery and one million tonne petrochemical complex between Atchutapuram and Rambilli mandals in the district, about 40 km. from here, will be finalised by year-end.

A top official of French oil major Total SA, one of the main constituents of the consortium planning to invest Rs.32,000 crores in the AP Special Economic Zone (APSEZ), said recently that they would consult the partners to take a decision by the end of the year.

The Greenfield refinery and the petrochemical complex will form part of Petroleum, Chemical and Petrochemical Investment Region (PCPIR) for which a development authority was set up recently with headquarters based at the office of the Visakhapatnam Urban Development Authority.

The project will come as an anchor tenant in the investment region, according to a top official of AP Industrial Infrastructure Corporation.

Total SA, Hindustan Petroleum Corporation Limited, Mittal Investment, Oil India and Gas Authority of India Limited will be the partners in the consortium. A memorandum of understanding was signed in October to study the feasibility and demand studies by Total SA. The GAIL will submit a report on the petrochemical unit to produce olefins and aromatics.

Maiden foray

This will be the maiden foray by Mittals into oil refinery sector. The production from the unit will be exported to markets in Southeast and West Asia. An area of 2,500 acres has already been allotted for the prestigious project. A naphtha cracker unit will come up outside the APSEZ.

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