BPCL plans to set apart Rs 20,000 cr for Kerala projects
Press Trust of India / Kochi October 21, 2011, 21:35 IST
Public sector Bharat Petroleum Corporation (BPCL) plans to set apart Rs 20,000 crore for further enhancing the capacity of Kochi Refinery (KRL) at nearby Ambalamugal and for setting up a petrochemical complex, Union Petroleum Minister S Jaipal Reddy said today.
"There is an ambitious proposal for BPCL to increase the capacity further. They also want to go in for a petrochemical complex. We will have to discuss with the state government. Talks in this regard are going on," Reddy said after dedicating to the nation the Rs 4,000 crore expanded capacity and modernised facilties of the BPCL-KRL refinery.
With the project's completion, the refining capacity has been enhanced to 9.5 million metric tonne (MMT) per annum from 7.5 MMT. There are plans to increase this further to 15.5 MMT.
The capacity expansion and modernisation project Phase II of the project at a total cost of Rs 4,000 crore is one of the largest capital investments in Kerala.
The Rs 4,200 crore Regasified Liquified Natural Gas (RLNG) terminal coming up at Puthu Vype was at an advanced stage of construction and would be commissioned by next year, the minister said.
This would be the biggest in the country and the first in South India and would be able to produce 4500 MW.
It will have a capacity of 18 MMSCMD (Million standard cubic feet per day) and would be a great boon for industries based on natural gas, said Reddy,who visited the project site.
The country's refining capacity has presently increased by more than three times to 193.38 MMT per annum from 62 MMT per annum in 1998. It is likely to increase to more than 230 MMT per annum by the end of 2012-13, Reddy said.
Chief Minister Oommen Chandy said BPCL has asked the state for 'special concessions' for deferment of sales tax for 15 years.
The government has entrusted the Chief Secretary to look into this and a decision would be taken soon after receiving the report, he said, adding, "there is no doubt that there will be a positive approach.Capacity expansion and new projects would throw up more job opportunities."